RBC Bearings SET TO PURCHASE ABB DODGE

RBC Bearings Incorporated has announced that it has entered
into a definitive agreement to acquire the Dodge mechanical
power transmission division of ABB for $2.9 billion
in cash.
With headquarters in Greenville, South Carolina, Dodge is
a leading manufacturer of mounted bearings and mechanical
products with market-leading brand recognition. Dodge
manufactures a complete line of mounted bearings, enclosed
gearing and power transmission components across a diverse
set of industrial end markets. Dodge primarily operates across
the construction and mining aftermarket, food & beverage,
warehousing and general machinery verticals, with sales predominately
in the Americas. DODGE generated revenue of
approximately $617 million and adjusted EBITDA of approximately
$174 million, representing an adjusted EBITDA margin
of 28%, for the 12 months ended June 30, 2021.

RBC Bearings Chairman, President and Chief Executive
Officer, Dr. Michael J. Hartnett, said, “We are very pleased to
announce the execution of an agreement between ABB and
RBC Bearings to acquire Dodge. The combination will enhance
RBC Bearings’ capabilities, footprint, and customer
base while increasing our access to Dodge’s attractive end
markets. Our businesses are highly complementary, with
Dodge bringing new offerings, new end markets, and more
scale to the combined organization. The combined company
will have an attractive position in the aerospace, defense and
industrial markets with a diversified client base and expansive
geographic footprint. We look forward to welcoming
Dodge’s talented team to RBC Bearings.”
“We are delighted that Dodge has found an excellent new
home with RBC Bearings, where it can continue its exciting
growth story,” said ABB CEO Björn Rosengren. “This transaction
further strengthens ABB’s balance sheet. In line with
our capital allocation priorities, we plan to first use the proceeds
from the transaction to fund organic growth, pay a rising
sustainable dividend per share and make value-creating
acquisitions.”