I was off the grid for a couple of days on a trip, then had a couple of catchup days. In the meantime ABB made a couple of blockbuster announcements. There is a lot of significance contained in the announcements. Most important is a new chief executive officer who will continue (and maybe even improve upon) the disciplined management that Fred Kindle brought to the company. He also has some experience in automation having served at GE Fanuc for a time. The second announcement is an acquisition that enhances the company's position in power markets--an area emphasized by management at the last ABB Automation World user conference. I suggest that you pay particular attention to Demare's statement about acquisition strategy at the end of the acquisition press release.
First, Joseph Hogan, current CEO of GE Healthcare will join ABB September 1 as its new CEO. GE is the bastion of disciplined management. He also will be skilled in dealing with strong personalities. I think this is an excellent fit for ABB as it moves on past the turmoil in the executive ranks.
Michel Demare, ABB's Chief Financial Officer, who has held the CEO position on an ad-interim basis since February 13, 2008, will continue to serve as ABB's CFO.
"I am honored to become ABB's CEO," Hogan said. "I am deeply committed to ABB's drive to increase energy efficiency and industrial productivity for its customers. I look forward to leading the Company to the next stage of its development and success together with the team at ABB."
The company announced July 16 that it has signed an agreement to acquire U.S. transformer company Kuhlman Electric Corp. for an undisclosed amount from global private equity firm The Carlyle Group to expand its power products portfolio in the Americas. Kuhlman Electric manufactures a wide range of high-quality transformers for the industrial and electric utility sectors.
ABB notes in its press release that Kuhlman "has demonstrated a track record of profitable growth with double-digit annual sales growth over the past five years. In 2007, the company had revenues of around $250 million. The business is well positioned to benefit from the investments required to modernize and expand the U.S. utility infrastructure and to increase industrial efficiency and reliability."
Michel Demare, ABB's Chief Executive Officer and Chief Financial Officer stated: "This transaction is the first milestone of our acquisition strategy, which is focused on finding bolt-on acquisitions that selectively complement both our product range and geographical presence. The addition of Kuhlman Electric's business into our power products portfolio will allow us to further capture opportunities for profitable growth. At the same time, our customers will benefit from our broader offering."
ABB plans to integrate Kuhlman Electric's operations into its Power Products business in North America.
7:53:48 AM 
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