ABB deals for K-TEK

Friday, June 4, 2010 @ 04:06 PM gHale

Continuing its spending spree, engineering giant ABB Ltd. dealt for U.S.-based measurement product maker K-TEK.
While ABB would not disclose the price of the K-TEK deal, it did spend over $1 billion to buy U.S. software maker Ventyx last month. It also spent nearly $1 billion to lift its stake in its India unit to 72%.
ABB is still looking at more acquisitions as prices in the industrial sector have fallen.
The company, despite its huge cash pile and limited debt exposure, is looking to deal for small and medium-sized takeovers in Asia and Latin America to broaden its market presence.
“This acquisition fills an important space in our product line,” said ABB’s Veli-Matti Reinikkala, head of the process automation division.
“K-TEK is well established, particularly in the oil and gas industry, which is a growth area for ABB. We see a lot of potential for synergy between ABB’s extensive geographic reach and exposure to other industries, and K-TEK’s depth in level detection technology.”
Prairieville, La.-based K-TEK, which has 250 employees and had $50 million in revenues year, will join the Measurement Products business unit within ABB’s Process Automation division. K-TEK offers a broad range of level detection instruments, as well as pressure and temperature switches.

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