Swiss technology company ABB has concluded the previously announced sale of its mechanical power transmission division, Dodge, to US-based engineering firm RBC Bearings.

The company was sold for a $2.9bn cash consideration.

In July 2021, RBC Bearings signed an agreement with ABB to acquire Dodge.

Dodge is engaged in the production of power transmission components, mounted bearings and enclosed gearings.

The company offers a range of mechanical power transmission products for the surface mining, aggregates and cement, warehousing and food and beverage industries.

It currently operates five manufacturing plants in the US and one in China.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The sale is part of ABB’s active portfolio management strategy and is intended to improve the company’s balance sheet.

With the divestment of Dodge, ABB has concluded the first of the three previously announced exits from divisions.

The company will use the proceeds from the sale to fund its organic growth and any future acquisitions, as well as for paying an annual dividend for each of its shares.

If applicable, the company plans to return additional capital to shareholders via share buybacks.

RBC Bearings chairman and CEO Dr Michael Hartnett said: “We are excited to welcome our Dodge teammates to the RBC Bearings family.

“The closing of this transaction is the first step to realising the great benefits of this combination.

“I want to thank the teams at RBC Bearings, Dodge and ABB for their incredible efforts to complete the transaction and their pursuit of a smooth, swift integration that will allow us to begin benefitting from the strengths of the combined company.”

The deal is expected to create a manufacturer of motion control components and performance-critical bearings.

Dodge currently employs around 1,500 people worldwide. For the 12 months to 30 June, the company reported revenues of almost $600m.