ZURICH, Oct 8 (Reuters) - Swiss engineering group ABB

ABBN.VX said on Tuesday it had agreed to sell all the assets of Baldor's generator-set business to Generac Holdings GNRC.N .

The world's biggest supplier of industrial motors and power grids said it had decided to divest the unit because of limited synergies with its core business.

ABB bought Baldor in 2011 for $3.1 billion. The generator-set business makes up roughly 3 percent of Baldor's total sales.

The terms of the transaction were not disclosed. The sale is expected to close in the fourth quarter.

(Reporting by Caroline Copley)

((Caroline.Copley@thomsonreuters.com; +41 58 306 7354; Reuters Messaging: caroline.copley.thomsonreuters.com@reuters.net))

Keywords: ABB BALDOR/