ABB and Niedax Group, a supplier of cable management systems, have entered into an agreement to form a new 50/50 joint venture around the integration of the North American cable tray businesses of ABB’s Installation Products Division and Niedax Group. This joint venture will focus on electrical contractors, distributors and system integrators across the United States, Canada and Mexico.
According to ABB, demand for cable tray systems has steadily increased and is estimated to be one of the fastest-growing areas of electrical components within North America. Used in electrical systems across a broad range of applications such as electric power distribution, communications and technology, construction and manufacturing, cable trays provide structural support and organization for electrical cables, raceways and conductors. The point of the joint venture is to leverage the resources of ABB and Niedax Group to deliver a more comprehensive product and services offering, as well as enhanced logistics capabilities, local R&D and production, and specialized services.
The planned joint venture will offer ABB Installation Products, T&B cable tray and ExpressTray steel wire basket tray product lines, as well as Niedax Group’s MonoSystems, Canadian Electrical Raceways and other Niedax product lines. The combined product portfolio will span a range of configurations, finishes and types of cable as well as ladder trays, wire baskets, channel and perforated trays, floor systems and boxes, accessories and fittings. ABB and Niedax point out that customers will have the ability to customize products to meet their needs.
The transaction is subject to customary closing conditions and is expected to close and commence operations in Q4 2024.
