In its first major acquisition since 2013, ABB, Zurich, Switzerland, announced a move today to help it push much further into the factory automation market. ABB agreed to acquire Bernecker & Rainer Industrie-Elektronik GmbH (B&R), which it described as “the largest independent provider focused on product- and software-based, open-architecture solutions for machine and factory automation worldwide.”
B&R was founded in 1979 by Erwin Bernecker and Josef Rainer and is headquartered in Eggelsberg, Austria, and operates across 70 countries, generating sales of more than $600 million (2015/16) in the $20 billion machine and factory automation market segment. It employs more than 3,000 people, including about 1,000 research & development and application engineers.
The combination of ABB with B&R will create a comprehensive offering for customers of industrial automation by pairing B&R’s products, software and solutions for modern machine and factory automation with ABB’s offerings in robotics, process automation, digitalization and electrification.
ABB is keying its hopes on leading what’s been called the Fourth Industrial Revolution (in broad terms the integration of advanced automation, artificial intelligence and big data into manufacturing systems) and called the move a major step in expanding its digital offering by combining its portfolio of digital solutions, branded under ABB Ability, with B&R’s application and software platforms, its large installed base, customer access and tailored automation solutions.
“B&R is a gem in the world of machine and factory automation and this combination is a once-in-a-lifetime opportunity. This transaction marks a true milestone for ABB, as B&R will close the historic gap within ABB’s automation offering. This is a perfect fit and will make us the only industrial automation provider offering customers the entire spectrum of technology and software solutions around measurement, control, actuation, robotics, digitalization and electrification,” said ABB CEO Ulrich Spiesshofer. “This acquisition perfectly delivers on our Next Level strategy. With our unique digital offering and our installed base of more than 70 million connected devices, 70,000 control systems and now more than 3 million automated machines and 27,000 factory installations around the world, we enable our combined global customer base to seize the huge opportunities of the Fourth Industrial Revolution.”
With the acquisition, ABB will expand its industrial automation offering by integrating B&R’s products in PLC, industrial PCs and servo motion as well as its software and solution suite. This will allow ABB to offer its customers a comprehensive, open-architecture automation portfolio.
ABB said B&R has a rapidly growing global customer base of more than 4,000 machine manufacturers, a proven track record in automation software and solutions and application expertise in the machine and factory automation market segments.
Both companies are heavily invested in research and development (R&D). B&R invests more than 10 percent of its sales in R&D and employs more than 1,000 people in R&D and application engineering. ABB spends $1.5 billion annually on R&D and employs some 30,000 technologists and engineering specialists.
On closing of the transaction, B&R will become part of ABB’s Industrial Automation division as a new global business unit – Machine & Factory Automation – headed by the current managing director, Hans Wimmer. Both companies consider B&R’s management and employees as a key driver of future growth and the business integration. The co-founders of B&R, Erwin Bernecker and Josef Rainer, will act as advisors during the integration phase to ensure continuity. ABB will add its own PLC and servo drive activities to the offering of the new business unit in a phased approach.
B&R’s headquarters in Eggelsberg will become ABB’s global center for machine and factory automation.
According to ABB, B&R delivered compound annual revenue growth of 11% over the last two decades and annual sales of $600 million in the $20 billion machine and factory automation market segment.
