- ABB (NYSE:ABB) agrees to sell its Dodge mechanical power transmission business to RBC Bearings (NASDAQ:ROLL) for $2.9B in cash.
- Dodge's products include mounted bearings, enclosed gearing and bushings for industrial applications; it achieved ~$600M for the last 12 months ending June 30, of which more than 90% were generated in the Americas.
- RBC Bearings expects the deal will be immediately accretive to cash earnings per share by 40%-60% in the first full fiscal year after closing, and expects cash EPS to be in the $7.00-$8.00/share range in the first full fiscal year.
- ABB said last November that it would explore options for Dodge, as well as its turbocharging unit and power conversion business.