ABB will buy Lorentzen & Wettre from ASSA ABLOY AB for approximately US$119 million to strengthen its business in the pulp and paper area. The company will be incorporated into ABB's process automation division.
Based in Sweden, Lorentzen & Wettre manufactures equipment for quality control, process optimization, and test instrumentation for the pulp and paper industry. It has production facilities in Sweden and Finland, and sales and service offices across Europe and in Canada, the U.S., China, Japan, and Singapore. The company has approximately 190 employees.
"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," said Veli-Matti Reinikkala, head of 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 fibre and pulp analysis devices, consistency transmitters, moisture sensors, laboratory paper testing instruments, automated paper testing systems, and industry specific services.
The transaction is subject to customary regulatory approvals. ABB expects the acquisition to be completed during the second half of the year.