Swiss engineering giant ABB on Monday said it is buying US electrical equipment manufacturer Thomas & Betts in a $3.9bn cash transaction.
The world’s largest producer of power and automation technologies offered $72 a share in cash for the Tennessee-based company.
The acquisition will provide ABB access to Thomas & Betts network of over 6,000 distributor locations and help it double its low voltage products market to around $24bn in North America, according to a company statement.
The acquisition price represents a 24 percent premium to Thomas & Betts; closing stock price on Friday.
The Zurich-based company has secured a fully underwritten bridge financing worth $4bn from Bank of America Merrill Lynch, said the group.
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