ABB has agreed to acquire UK-based industrial flow control specialist Rotork in a all-cash deal of $5.5 billion, strengthening its automation portfolio and capabilities in mission-critical intelligent flow control solutions.
Under the terms of the agreement, Rotork shareholders will receive 503 pence in cash for each share, representing a premium of around 60% over the company's three-month average share price. Shareholders will also receive an interim dividend of up to 3 pence per share for the period ending June 30, 2026, without any reduction in the offer value.
The transaction values Rotork at an enterprise value of around $5.5 billion, equating to an EV/Sales (2025 actual) multiple of approximately 5.3x and an EV/EBITDA (2025 actual) multiple of around 19.5x, which ABB expects to fall to the mid-teens after anticipated synergies.
The acquisition will significantly strengthen ABB's position in industrial automation by adding Rotork's expertise in intelligent actuators, flow control, and instrumentation. The deal expands ABB's presence at the field-device layer, enhancing its end-to-end "sense-control-act" automation offering while increasing exposure to higher-margin products, services, and recurring lifecycle revenues.
For Rotork, the combination provides access to ABB's global footprint, technology platforms, digital capabilities, and customer relationships, creating opportunities to accelerate growth across key sectors, expand service offerings, and strengthen intelligent diagnostics and asset management solutions.
Following completion, Rotork will continue to operate as a separate division within ABB's Automation business under the company's decentralized operating model.
Rotork generated approximately $1 billion in revenue in 2025 and recorded an adjusted operating profit margin of 24.6%. The business is expected to add around 3% to ABB's revenues and approximately 12% to ABB's Automation business area while immediately improving operating profitability.
Morten Wierod, CEO of ABB said: “ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality, and customer trust that Rotork’s teams deliver each day. We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer generating significant value for customers, employees, and shareholders of both companies.
"As part of ABB, Rotork is expected to accelerate its growth and value creation while preserving its entrepreneurial spirit and customer proximity that makes this business so successful. With our strong balance sheet ABB has room for additional M&A and execution of its announced share buyback program.”
Dorothy Thompson, Chair of Rotork added: “The Board believes that the offer from ABB reflects the high quality of Rotork and recognises the significant progress delivered through the successful implementation of our Growth+ strategy, whilst providing an attractive opportunity for Rotork shareholders to accelerate the value creation of the Company's strong future prospects, in cash at closing.
"The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations.
"The Board also believes that ABB's decentralised operating model and commitment to run Rotork as a separate division will benefit the Group's business, employees and wider stakeholders. As a result, the Board has unanimously agreed to recommend the offer to Rotork shareholders.”
