Bath-based engineering firm Rotork has agreed to a £4.1bn takeover by Swiss industrial group ABB, in a deal that will see the flow control equipment manufacturer operate as a separate division within ABB's Automation business area.
Deal details and strategic fit
Rotork, which provides flow control equipment for the oil and gas sector, announced on Thursday that the two companies are a 'strategic fit'. Zurich-based ABB will pay 506p per share for Rotork, a price that the Rotork board has unanimously agreed to recommend to shareholders.
Dorothy Thompson, chair of Rotork, said the offer provides 'an attractive opportunity' for Rotork shareholders to accelerate the value creation of the company's future prospects. '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,' she said.
ABB's perspective and job impact
Morten Wierod, president and chief executive 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.'
ABB cautioned that there may be some job cuts where there is overlap in back office areas, such as administrative and support functions, but said these are 'not expected to be material'. It added: 'ABB does not intend to make any other headcount reductions that would be material.'
Rotork's financial performance and market impact
Rotork averaged eight per cent organic revenue growth in the financial years 2022 to 2025, and strong profitability with an adjusted operating profit margin of 24.6 per cent for the financial year ended December 31, 2025.
The deal marks the latest foreign swoop on a UK-listed company and deals another blow to the London market, coming after a spate of takeovers for the likes of easyJet, Intertek, Tate & Lyle and William Hill owner Evoke.
