In an attempt to streamline its portfolio,
) has decided to vend Thomas & Betts' Meyer Steel Structures
business to Trinity Industries Inc. (TRN). This all-cash deal is
valued at $600 million and is expected to close in the third
quarter of 2014, subject to regulatory approvals.
Post the acquisition of Thomas & Betts in 2012, Meyer Steel
Structures was integrated into ABB's business. However, the
business did not generate the desired results as it failed to
complement ABB's main as well as other businesses. However, post
the divestiture, Thomas & Betts business will remain in ABB's
portfolio, supporting ABB's growth opportunities in its Low Voltage
Products division in North America and internationally.
The divestiture is a win-win situation for both ABB and Trinity
Industries. While the divestment will allow ABB to concentrate on
its Low voltage product line, the inclusion of the Meyer Steel
Structures will complement Trinity's existing line of business.
Based in Dallas, TX, Trinity Industries is a diversified industrial
company which provides products and services to the industrial,
energy, transportation and construction sectors.
This divestiture by ABB comes on the heels of the sale of
Power-One's Power Solutions business to Bel Fuse Inc - a
manufacturer, distributor and marketer of power supply products -
for $117 million.
Based in Zurich, Switzerland, ABB is a leading player in the
power and automation technology industry. Such technologies help
utility and industry customers to improve performance, while
reducing negative impacts on the environment.
Some better-ranked stocks that can be considered at present
). While EnerSys sports a Zacks Rank #1 (Strong Buy),
ESCO Technologies Inc.
) carries a Zacks Rank #2 (Buy).
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