ABB acquires U.S. Transformer Company Kuhlman Electric Corporation for America Presence
ABB finally made the move I’d hope they make! In this A.D.D. market only able to focus on 2 things: financials and oil, great things are happening at individual companies and not even registering on the radar. ABB acquires U.S. transformer company Kuhlman Electric Corporation. This is one of the sweetspots (of the limited investable opportunities) for the power grid upgrade and buildout. I own SPX Corp (SPW) exactly for their transformer business, SPX Corp’s fastest growing business:
“Our Industrial Products and Services segment had revenues of $966.4, $836.7 and $716.0 in 2007, 2006 and 2005, respectively. Of the segment’s 2007 revenue, approximately 44% was from the sale of power transformers into the US transmission and distribution market.” ~SPX Corp’s 2007 10-K
One of my very first blog post dealt with the twin drivers for the power grid infrastructure suppliers: U.S. power grid outdated by some 30 yrs, always using near capacity and a system shock away from massive destructive blackouts. The complementary driver: BRIC (and then some..Mid East especially, no one talks about Saudi Arabia building 4 Dubai like cities….) countries building whole CITIES, of which the power grid is the foundation.
The problem with investing on this theme was Read the rest of this entry »
