Don’t miss the latest developments in business and finance.

Home / Content / B2B Connect / Plastics & Polymers / ABB buys B&R to strengthen leadership position in industrial automation

ABB buys B&R to strengthen leadership position in industrial automation

B&R recorded annual sales of more than $ 600 mn in the $20-bn machine & factory automation market

Image image via Shutterstock.
Premium
<a href="http://www.shutterstock.com/pic-280078178/stock-photo-vehicle-manufacturing-is-in-progress.html?src=5I6XtF6qo58KQnWD9h-npA-1-0" target="_blank">Image</a> image via Shutterstock.
BS B2B Bureau Zurich, Switzerland
Last Updated : Apr 10 2017 | 10:29 AM IST
Connect with us
Facebook IconLinkedIN Icon
ABB Group has acquired B&R - the largest independent provider focused on product- and software-based, open-architecture solutions for machine and factory automation worldwide – for an undisclosed amount. B&R, founded in 1979 by Erwin Bernecker and Josef Rainer is headquartered in Eggelsberg, Austria, employs more than 3,000 people, including about 1,000 R&D and application engineers. It operates across 70 countries, generating sales of more than $600 million (2015-16) in the $20 billion machine and factory automation market segment. 

“The combination will result in an unmatched, comprehensive offering for customers of industrial automation, by pairing B&R's innovative products, software and solutions for modern machine and factory automation with ABB Group’s world-leading offering in robotics, process automation, digitalisation and electrification,” said ABB in a press release on Tuesday.

Through the acquisition, ABB group expands its leadership in industrial automation and will be uniquely positioned to seize growth opportunities resulting from the Fourth Industrial Revolution. In addition, the group takes a major step in expanding its digital offering by combining its industry-leading portfolio of digital solutions, ABB Ability, with B&R's strong application and software platforms, its large installed base, customer access and tailored automation solutions.

“B&R is a gem in the world of machine and factory automation and this combination is a once-in-a-lifetime opportunity. This transaction marks a true milestone for ABB Group, as B&R will close the historic gap within ABB Group’s automation offering. This is a perfect fit and will make us the only industrial automation provider offering customers the entire spectrum of technology and software solutions around measurement, control, actuation, robotics, digitalisation and electrification,” said Ulrich Spiesshofer, ABB Group CEO. 

He added, “This acquisition perfectly delivers on our Next Level strategy. With our unique digital offering and our installed base of more than 70 million connected devices, 70,000 control systems and now more than 3 million automated machines and 27,000 factory installations around the world, we enable our combined global customer base to seize the huge opportunities of the Fourth Industrial Revolution.”

With the acquisition, ABB Group will expand its industrial automation offering by integrating B&R's innovative products in PLC, industrial PCs and servo motion as well as its software and solution suite. ABB Group will offer its customers a uniquely comprehensive, open-architecture automation portfolio.

B&R has grown successfully with a revenue CAGR of 11 percent over the last two decades. Revenues more than quintupled since 2000 to more than $600 million (2015-16). The company has a rapidly growing global customer base of more than 4,000 machine manufacturers, a proven track record in automation software & solutions and has application expertise for customers in the machine and factory automation market segment.

Both companies have complementary portfolios. ABB Group is a leading provider of solutions serving customers in utilities, industry and transport & infrastructure. B&R is a leading solution provider in the automation of machines and factories for industries such as plastics, packaging, food and beverage. The joint commitment to open architecture increases customer choice and flexibility facilitating connectivity in increasingly digitalised industries.

Innovation is at the heart of both companies. B&R invests more than 10 percent of its sales in R&D and employs more than 1,000 people in R&D and application engineering. ABB Group spends $1.5 billion annually on R&D and employs some 30,000 technologists and engineering specialists. Going forward, ABB Group and B&R will continue to invest considerably in R&D.

“Automation of machines and factories is a key driver of the Fourth Industrial Revolution and the IoT. ABB Group will continue B&R's strong solution-based business model and build on its deep domain expertise to develop new software-based services and solutions for end-to-end digitalization. ABB Group’s industry-leading digital offering, ABB Ability, will now capitalize on the large installed base, application and solution know-how, simulation software expertise and advanced engineering tools of B&R,” added ABB in the press release. 

Connect with us on WhatsApp

Also Read

ABB Group acquires Austrian machine automation firm B&R

4 out of 10 jobs would be lost to automation by 2021

Incentivise automation in manufacturing to give a boost for Make in India

89% people positive on benefits of automation, robots in workplace: Study

Automation in insurance

First Published: Apr 07 2017 | 2:33 PM IST

Explore News