ABB to acquire UK valve-maker Rotork for $5.5bn in cash, extending foreign buying spree of London stocks

The deal

ABB, the Zurich-based engineering group employing more than 100,000 people, announced on Thursday that it had agreed to buy British industrial components maker Rotork for an enterprise value of around $5.5 billion (£4.1 billion). The all-cash offer of 503 pence per share was confirmed by ABB and Rotork, though the Financial Times reported a figure of 506p. Rotork shareholders will also be entitled to an interim dividend of up to 3 pence per share.

We are convinced of the compelling strategic fit of the transaction.

Rotork's board has unanimously backed the acquisition and is recommending that shareholders accept. The offer represents a premium of roughly 60% to Rotork's three-month average share price. On Wednesday, Rotork shares closed at 290p, up 0.8% on the day.

Strategic rationale

Rotork is one of the world's largest manufacturers of safety devices that open and close valves in pipelines, specialising in electric actuators and flow-control systems used across the oil, gas, chemical and water industries. ABB said the business would complement its existing automation portfolio, adding established positions in critical flow-control and measurement technology. The Swiss group intends to fold Rotork into its automation division, which it is expanding partly with cash from the recent sale of its Robotics unit.

Financial impact

Rotork generated revenue of around $1.0 billion in 2025 with an operative EBITA margin of 24.6%, according to ABB. The acquisition is expected to lift ABB's top line by about 3% and immediately improve its operative EBITA margin. ABB plans to finance the deal from existing cash reserves, committed credit lines, and the proceeds from the Robotics disposal.

Market context

The purchase adds to a record-breaking run of foreign buyers targeting London-listed companies this year, drawn by depressed valuations and the international reach of many UK firms. The deal values Rotork at roughly 17 times its 2025 revenue, based on the $1.0 billion sales figure and the $5.5 billion enterprise value.

What happens next

The transaction is expected to close in the first half of 2027, pending approval from Rotork shareholders and the usual regulatory clearances. A shareholder vote is anticipated in the second half of 2026.