According to recent reports, TE has entered into an exclusive negotiation agreement with ABB to acquire its Entrelec terminal business. While the financial details of the deal remain undisclosed at this time, the move signals a significant strategic step for TE in expanding its product portfolio.
Founded in 1920, Entrelec has served customers across more than 70 countries and was acquired by ABB in 2001 for 310 million euros. As one of the world's leading connector manufacturers, TE is known for its extensive range of connectivity solutions. The acquisition of Entrelec would allow TE to enhance its offerings with a broader selection of terminal blocks, enabling more comprehensive power, signal, and data connectivity solutions for its clients.
Lars Brickenkamp, Senior Vice President and General Manager of TE’s Industry Department, emphasized that this acquisition aligns well with TE’s strategy. He stated, “Combining the two brands will strengthen our position in the market and provide customers with a more complete and diverse product platform. The integration of TE’s industrial team with ABB’s expertise will further boost collaboration in automation.â€
TE has consistently demonstrated strong financial performance. In 2017, the company reported net sales of $13.1 billion, reflecting a 9% increase from the previous year. This growth was largely driven by a strong fourth quarter, which marked a successful end to the fiscal year. Adjusted earnings per share also rose by 22%, reinforcing TE’s commitment to innovation and global expansion.
Looking ahead, TE anticipates first-quarter 2018 net sales between $3.35 billion and $3.45 billion, with full-year sales expected to reach $14.1 billion. This confidence stems from the company’s ongoing efforts to deploy advanced products and services worldwide.
In terms of technology, TE recently launched the Intercontec connector, designed to seamlessly integrate power, signals, and data. Featuring a modular design, it offers high compatibility and flexibility, making it ideal for various applications. Its plug-and-play functionality simplifies installation, even for non-professionals.
ABB’s Entrelec terminals are renowned for their use of ADO insulation displacement connection technology, a globally recognized standard. This technology ensures reliable connections in harsh environments and is widely used in industries such as energy, railways, automotive, chemical, petrochemical, marine, and construction. It eliminates risks associated with manual wiring and provides long-term durability.
Since its establishment in 1920, Entrelec has been based in Lyon, France—home to some of the most stringent quality standards in the railway industry. With ABB’s strong presence in China, the acquisition could help Entrelec expand its market share and gain greater traction in the Chinese terminal market.
Some notable projects utilizing ABB terminal blocks include the French Renault Automotive Production Line, Paris Metro, Huizhou Petrochemical Nanhai Shell Project, Alstom Substation, Shanghai Metro, Nanjing Metro, Nanjing Puzhen Locomotive Works, Beijing Bernard Electric Actuators, Shenzhen Metro, Changqing Oilfield IT Pipeline Project, and Guizhou Crystal Organic Chemicals’ production line upgrades.
As the deal moves forward, it must meet certain conditions, including regulatory approvals and negotiations with employee representatives. While the future remains uncertain, the acquisition promises to bring exciting developments for both companies.
Whether ABB will fully embrace this partnership remains to be seen, but the potential for growth and innovation is undeniable. Stay tuned for more updates on this evolving story.
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