How ABB’s $5.5bn Rotork Deal Promotes Data Centre Automation

Data centre operators managing complex cooling, power and process systems are set to gain a new level of supplier scale, following ABB's agreed cash offer for Rotork, the UK-based flow control and actuator specialist. 

The deal, valued at an enterprise value of around US$5.5bn, brings ABB's automation portfolio together with Rotork's instrumentation technology, used across industrial process environments including data centres, water and power infrastructure.

Under the terms of the recommended offer, Rotork shareholders will receive 503p (US$6.75) in cash per share, a premium of around 60% when compared against the company's latest three-month average share price, plus an interim dividend of up to 3p per share without any reduction to the offer value.

The transaction reflects an EV/Sales multiple of around 5.3 and an EV/EBITDA multiple of around 19.5x for 2025, a figure ABB expects to fall towards the mid-teens once synergies are accounted for.

Rotork recorded average annual organic revenue growth of 8% between 2022 and 2025, with 2025 revenues of around US$1bn and an adjusted operating profit margin of 24.6%.

ABB expects the acquisition to add around 3% to its overall revenues and 12% to the revenues of its Automation business area, with immediate accretion to Operational EBITA margin at both levels.

Strengthening the automation loop

ABB frames the acquisition as a way of extending its reach into the field-device layer, where sensors and actuators feed data back into the control systems managing industrial operations.

Rotork's instrumentation is expected to strengthen what ABB describes as its "sense-control-act" loop, supporting continuous monitoring of processes across sectors including oil and gas, chemicals, water and data centres.

"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,” says Morten Wierod, CEO of ABB.

“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 programme."

Rotork is expected to continue operating as a separate division within ABB's Automation business area, under ABB's decentralised operating model, which places operating decisions within individual divisions.

UK manufacturing base to continue

ABB has no current plans to significantly change Rotork's presence in the UK, where the company retains its manufacturing and technology base. ABB already employs over 1,700 people in the UK and intends to support continuity of leadership at Rotork following completion.

"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,” says Dorothy Thompson, Chair of Rotork.

“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."

Financing and next steps

ABB will finance the transaction using existing cash resources, reported at approximately US$5.8bn as of June 30, 2026, alongside committed bank facilities.

The company also expects to draw on around US$4.8bn in net cash proceeds from the sale of its Robotics business to SoftBank, targeted to close in the second half of 2026.

The transaction will proceed through a court-sanctioned scheme of arrangement under the UK Companies Act 2006, with Rotork's board unanimously recommending shareholders vote in favour.

Completion is expected in the first half of 2027, subject to shareholder approval and regulatory clearances.