Switzerland's ABB to Buy Baldor Electric for $3.1 Billion

Swiss company ABB will buy U.S. motor manufacturer Baldor Electric Company (BEZ) for $3.1 billion or $63.50 per share.

The deal will offer ABB more opportunities in the North American market and allow Baldor to find global customers for its industrial electric motors.

Joseph Hogan, CEO of ABB, told The New York Times that the United States is on the verge of "reindustrializing" and is seeking to boost its economy and upgrade its physical infrastructure.

The Baldor deal will increase ABB's presence in the "U.S. industrial automation market, one of its few geographic and product weaknesses," according to JPMorgan analysts.

The deal will close in the first quarter of 2011. The companies said they expect annual savings of $100 million by 2015.