On Tuesday July 12, 2011 ABB Ltd (ADR) (NYSE:ABB), an eminent manufacturer of dry-type transformers and inductors for low-voltage and medium-voltage applications has enrolled itself into an agreement in order to accomplish its acquisition of the Trasfor Group. As of now the company has seized to provide any acknowledgement regarding the financial terms of the respective deal.
Trasfor, is a manufacturing company based in Lugano, Switzerland; possessing two plants in Italy. The company is primarily involved in the production of an array of energy-efficient products which are efficiently used in drives, railway rolling stock, offshore wind power and other types of power generation based on renewable energy. Trasfor supplies its finished products to oil and gas, marine and other such industries.
ABB Limited; a Zurich based automation Technology Company operates across the globe in approximately 100 countries. Its global organizations are segregated into five regions namely Europe, Americas, Asia, the Middle East and Africa.
The ABB ‘s acquisition of the Trasfor Group appears to remunerative for the Company, owing to the increasing demand for the Dry-type transformers, which are less flammable having resin in place of oil as its core ingredient. There will be a marked increase in the ABB’s collection of transformers with the addition of the Trasfor’s range of energy-efficient products thereby providing the company an opportunity for the expansion of its customer base and enhancing its market presence.
The respective deal is subjected to the customary regulatory approvals; hence the acquisition is expected to be completely executed by the second half of 2011.
Shares of ABB are down 0.35% to $25.46.