WKB has advised ABB on the Polish aspects of its acquisition of GE Industrial Solutions, General Electric’s global electrification solutions business. The seller, General Electric, was represented by Weil, Gotshal & Manges.
ABB specializes in electrification products, robotics and motion, industrial automation, and power grids, and serves customers in utilities, industry and transport, and infrastructure. According to WKB, ”the acquisition of GEIS strengthens ABB’s second global position in electrification.” The compamy plans to integrate GEIS into ABB’s Electrification Products division as a new business unit called Electrification Products Industrial Solutions.
According to ABB, "the USD 2.6 billion transaction offers substantial value creation potential within ABB, including growth opportunities to be leveraged from coupling ABB’s digital offering, ABB Ability, with the extensive GEIS installed base. ABB expects to realize approximately USD 200 million of annual cost synergies in year five, which will be key in bringing GEIS to peer performance."
The transaction closed on June 30, 2018, after receiving clearance from the European Commission.
The WKB team was led by Partners Jakub Jedrzejak and Ben Davey, supported by Senior Associates Magdalena Piszewska, Krzysztof Wawrzyniak, and Karina Chrostowska.
Weil's Warsaw-based team was led by Partner Lukasz Gasinski, assisted by Partner Filip Uzieblo and Associates Tomasz Bakowski, Tomasz Karkowski, and Wiktor Zien. Senior Associate Marek Kanczew provided tax advice.