Rotork (LON:ROR) maths put ABB (SWX:ABBN) on spot for £45 million-£82 million profit
ABB has set a stiff bar with its £4.1 billion bid for Rotork. Based on ABB’s “mid-teens” earnings multiple—interpreted as 14 to 16 times—Rotork will have to boost annual EBITDA by about £45 million to £82 million from the 2025 starting point to hit those targets. ABB hasn’t broken down how much it’s counting on from cost cuts, sales or other sources.