ABB to Acquire Lorentzen & Wettre

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ABB, Zurich, Switzerland, this week agreed to acquire Lorentzen & Wettre from ASSA ABLOY AB, Sweden, for a price of about $119 million (SEK 750 million), to strengthen its business in the pulp and paper area. Based in the Kista district of Stockholm, Sweden, Lorentzen & Wettre manufactures equipment for quality control, process optimization, and test instrumentation for the pulp and paper industry. It has production facilities in Kista and Kajaani, Finland, and sales and service offices across Europe and in Canada, China, Japan, Singapore, and the U.S. The company has approximately 190 employees, and will be incorporated into ABB's Process Automation division.

Founded in 1895, Lorentzen & Wettre has technology that contributes to improving paper quality, reducing manufacturing costs, and cutting the consumption of raw materials and energy. The company's offering includes automated fiber and pulp analysis devices, consistency transmitters, moisture sensors, laboratory paper testing instruments, automated paper testing systems, and industry specific services.

Lorentzen & Wettre reported revenues of SEK 307 million ($49 million) in 2010 and expects an increase to SEK 335 million ($53 million) in 2011.

"This acquisition will nicely complement our existing portfolio of pulp and paper industry offerings," said Veli-Matti Reinikkala, head of ABB's Process Automation division. "This is an excellent strategic fit as Lorentzen & Wettre's products and services will enable us to address the broad spectrum of pulp and paper production challenges."