Baldor

Electricity drives Baldor Electric's sales -- and its products. The company manufactures industrial AC and DC electric motors, controls, and speed drives that power products ranging from material handling conveyors to fluid handling pumps. Other products include industrial grinders, buffers, polishing lathes, and generators. Baldor Electric sells to OEMs primarily in the agricultural and semiconductor equipment industries and to independent distributors for resale as replacement parts. It has about two dozen plants in Canada, China, Mexico, the UK, and the US. Baldor Electric, a subsidiary of  ABB, gets most of its sales in the US, although it has customers in some 70 countries.

Change in Company Type

In 2011 Swiss industrial products giant ABB acquired Baldor for about $3.1 billion, plus $1.1 billion in net debt. ABB is looking to boost its presence in North America and strengthen its position in the market for energy-efficient products, which is expected to grow as new energy efficiency legislation goes into effect in the US. Baldor's electric motors and mechanical transmission product lines, along with its established industrial customer base, will fit well with ABB's energy-efficient drives and complementary motor products. Baldor will be able to expand internationally using the global customer base and strong channel sales organization of the Swiss conglomerate.

Strategy

Baldor is focused on organic growth through new product development, especially in the area of energy-efficient motors. On average, it releases 250 new products per year. Its 2012 and 2011 releases include expansions of its DC motors, AC motors, and AC permanent magnets product lines.