Swiss engineering firm ABB has moved to expand its electrification business, especially in North America, with a $ 2.6 billion deal to acquire GE Industrial Solutions (GE IS). The move announced September 25 is the latest by GE to refocus its operations under new chief executive John L. Flannery, who replaced long-time GE CEO Jeffrey Immelt in August.

ABB, based in Zurich, Switzerland, in a news release said it wanted to expand its “access to North America” and take advantage of GE’s “significant installed base globally.” ABB said it expects to improve the performance of the GE IS division, which it said had been a “non-core business for GE.” ABB noted that GE IS has a “comprehensive electrification portfolio,” which is complementary to ABB’s existing business, and the unit will be integrated into ABB’s Electrification Products (EP) division.

For its part, GE will have access to “ABB’s leading portfolio through [a] long-term supply partnership” for ABB products, that GE currently sources, and ABB has agreed to continue to use the GE brand.…

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