After an extensive five-month search for a new chief executive officer, engineering and automation giant ABB Group today said that Joseph Hogan, a top executive at General Electric Co., will step into that role.

Hogan, 51, is a 23-year veteran of GE. He currently is CEO of GE Healthcare. Previously, he served as president and CEO of GE Fanuc Automation North America and GE Medical Systems.

Following the surprise departure in February of Fred Kindle, ABB Chief Financial Officer Michel Demare has handled the CEO duties. Demare, who was on the short list of CEO candidates, will resume his full-time post as CFO when Hogan joins the company on Sept. 1, the company said.

During a press conference call this morning, ABB Chairman Hubertus von Gruenberg said Hogan's strong customer commitment, proven international track record, and strong leadership skills were the deciding factors in his selection.

"He will have a great impact on ABB as we continue to focus the organization," von Gruenberg told the press and analysts. "He is the right person to lead ABB, and he is coming to the right place at the right time."

While not elaborating on what the appointment means for the company's strategy going forward, von Gruenberg indicated that mid-term targets remain intact. "On the other hand, we are installing a full-fledged CEO, so there will be impacts that he is going to make," von Gruenberg said.

Industry speculation is that more acquisitions will be a significant part of that change. When Kindle left ABB in February due to "irreconcilable differences," news reports speculated on a clash between the ABB board and Kindle over an acquisition strategy.

While Kindle, who was ABB's CEO from January 2005 to February 2008, is credited with restoring financial stability to the company, putting its power and automation groups on a growth path, and settling asbestos liability claims, there has been industry speculation that he was not as aggressive with acquisitions as the board would have liked.

ABB, based in Zurich, has $5.5 billion in its cash reserves. And just yesterday, under Demara's watch, the company acquired Kulman Electric Corp., a U.S.-based transformer company.

Given the currency exchange rate, more U.S.-based companies may be on ABB's radar, sources said. And ABB's board may have chosen Hogan, who executed 45 to 50 acquisitions over an eight-year period at GE, for his acquisition acumen.

When journalists and analysts on the call pressed Hogan on his plans for acquisitions, he answered tactfully: "What I have learned and what I have always believed in is that you just don't do an acquisition for revenue sake. It has to be based on a strategy. You have to be concerned about what you bring to that acquisition, where it fits in the organization, and also the integration process has to be rigorous, with strong leaders and strong processes to track progress around 15 to 20 [different] dimensions."

Hogan said he would like to have a business plan ready to share with the analyst community by the end of this year. While he said it is premature to talk about how he will build out the company, aftermarket service may be high on his to-do list.

"I do [have] a decent services background [focused on] how you move from parts and repair to a broader evolution of services, all the way to consulting," Hogan said. "I do think there is an opportunity here ... I'll look at all of the aspects to see if I can grow ABB into that area."