On Monday, RBC Bearings has offered to buy the Swiss engineering company ABB’s power transmission unit Dodge since the US bearings maker searches to reduce its exposure to the pandemic-hit aerospace industry. This is due to RBC’s shares increasing by 19.4% as compared to ABB whose shares only increased by 1%.
Dodge has had some relations with RBC in the bearings used for food processing operation and belted drives in conveyor for mines. Both have had an exposure with high growth markets such as warehousing, where online shopping is driving a boom during the health crisis.
RBC Bearings Chief Executive Officer, Michael Hartnett, stated, “The combination will enhance RBC Bearings’ footprint… while increasing our access to Dodge’s attractive end markets.” Upon closure of the deal, expected in the fourth quarter of 2021, RBC’s sales from aerospace will have been reduced to 30% and hence will receive 70% of its overall revenue from a wide range of existing and new industrial end markets.
