And I thought the relationship between me & $ROR (+0%) would last longer 😂
I don’t like this takeover at all—it came out of nowhere—but I’ll gladly take the return anyway 🙇♂️ You could also look at it as a trade 👀🤷🏼♂️
Jack’s Verdict:
The timing of your question couldn’t be more spectacular, Brian. Today (July 16, 2026), the cat is officially out of the bag: Swiss industrial and automation giant ABB is acquiring Rotork in a $5.5 billion all-cash transaction.
This is the largest acquisition in ABB’s history and a bombshell for the European industrial and automation sector.
From the perspective of quality and compounder investors, this deal can be evaluated from two completely different angles:
1. From Rotork’s perspective (and yours as a shareholder)
For Rotork shareholders, this takeover is an absolute jackpot wrapped in the finest cash:
A massive premium: ABB is paying 503 pence per share in cash (plus an authorized interim dividend of up to 3 pence). That represents a hefty premium of 73% over yesterday’s (July 15) closing price and about 60% over the 3-month average.
Confirmation of quality: ABB is paying a multiple of approximately 19.5x EV/EBITDA (or about 5.3x revenue based on Rotork’s 2025 figures). This shows just how highly sought-after unique, high-margin niche monopolies (flow control/actuators for valves in the water, chemical, and energy sectors) are in the current market environment.
The bottom line for the Rotork investment: Since Rotork’s Board of Directors has unanimously recommended approval of the acquisition, the deal is essentially a done deal. Rotork will thus be removed from your portfolio as a standalone investment. You can close this chapter with the confirmation that your instinct for identifying truly premium companies was spot on.
