ABB (ABB $20.65 -0.59) and Thomas & Betts (TNB $71.18 +13.23) announced that both company's boards of directors have agreed to a transaction in which ABB will acquire TNB for $72 per share in cash or approximately $3.9 billion.
The acquisition price represents a 24% premium to TNB's closing stock price on Jan 27. The combined product portfolio and enhanced distribution network will enable ABB to double its addressable market in North America to ~$24 bln.
ABB expects the transaction will deliver approximately $200 million in annual synergies by 2016. The majority of cost synergies are expected to come from sourcing and purchasing efficiencies.






