ABB, a global technology leader in electrification and automation, has announced that it has agreed with Rotork plc on the terms of a recommended all-cash offer for the company. The proposed transaction represents an enterprise value of approximately $5.5 billion. Rotork is a global provider of mission-critical intelligent flow control solutions and a leading independent manufacturer of electric actuators. The proposed acquisition would expand the ABB Automation portfolio at the field-device layer, adding flow control, instrumentation and actuator technologies for industrial and infrastructure applications.

Under the terms of the offer, Rotork shareholders would receive 503 pence in cash for each Rotork share. The offer represents a premium of approximately 60% over the company’s latest three-month average share price. Shareholders would also remain entitled to an interim dividend of up to 3 pence per share for the period through June 30, 2026, without a reduction in the offer value. The combination is expected to strengthen the ABB sense-control-act automation loop by adding intelligent field devices and software that continuously monitor and manage industrial processes. Rotork serves the oil and gas, chemical, process, industrial, data center, water and power markets, where reliable flow control is essential to safe and efficient operations.

Process Control Industry Monthly: Rotork intelligent flow control and electric actuator technology included in the proposed ABB acquisition.

Rotork intelligent flow control and electric actuator technologies would expand the ABB process automation offering at the field-device layer.

The proposed transaction would also enable Rotork to draw on the ABB global sales and service organization, digital platforms and technology capabilities. ABB sees opportunities to expand the Rotork installed-base service model while accelerating the development of intelligent device diagnostics and asset management solutions.

“ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality, and customer trust that Rotork’s teams deliver each day. We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer generating significant value for customers, employees, and shareholders of both companies. As part of ABB, Rotork is expected to accelerate its growth and value creation while preserving its entrepreneurial spirit and customer proximity that makes this business so successful. With our strong balance sheet ABB has room for additional M&A and execution of its announced share buyback program,” said Morten Wierod, CEO of ABB.

Rotork recorded average annual organic revenue growth of 8% from 2022 through 2025. The company generated approximately $1 billion in revenue during 2025 and reported an adjusted operating profit margin of 24.6%. ABB expects Rotork to add approximately 3% to its total revenues and approximately 12% to revenues within its Automation business area. The transaction is also expected to be immediately accretive to the ABB Operational EBITA margin.

Following completion, Rotork is expected to operate as a separate division within the ABB Automation business area. ABB has stated that it has no current plans to significantly change the company’s presence in the United Kingdom, which is expected to remain an important manufacturing and technology base for Rotork.

The transaction would be implemented through a court-sanctioned scheme of arrangement under the UK Companies Act 2006. The Rotork board has unanimously approved the transaction and intends to recommend that shareholders vote in favor of the offer. Completion is expected during the first half of 2027, subject to shareholder approval and customary regulatory clearances.

About ABB

ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries improve efficiency, productivity and sustainability. The company has more than 140 years of history and approximately 110,000 employees worldwide. ABB shares are listed on the SIX Swiss Exchange and Nasdaq Stockholm. To learn more, please click here. 

Source/Photo Credit: ABB/Rotork

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Molly Bakewell Chamberlin
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