ABB sells its power conversion division for $505 million
Reuters
Published Jan 20, 2023 07:59
Updated Jan 20, 2023 21:40
ZURICH (Reuters) -ABB has sold its U.S.-based power conversion business to AcBel Polytech Inc for $505 million, the Swiss engineering and technology company said on Friday.
Taiwan-based AcBel said the deal would help complete its products portfolio, covering areas including 5G, data centres, high-performance computing and electric vehicle charging while accelerating an upgrade of the power supply industry and development of the North American market.
The deal, which is subject to U.S. and Taiwan authorities' approval, is expected to be completed in the second half of 2023, AcBel said in a statement.
The sale is the last part of ABB's measures to trim its portfolio of companies which saw it sell its power transmission unit Dodge and spin off its turbocharging business Accelleron to shareholders.
ABB said it expects to make a small non-operational book gain from the sale of the Conversion business, which provides products for telecoms, data centres and general industry.
Chief Executive Bjorn Rosengren said he was "delighted" with the deal which completed divisional portfolio divestments announced by ABB at the end of 2020.
Power Conversion was acquired by ABB as part of the GE Industrial Solutions acquisition in 2018 and was not core to ABB, the company said.
The division is based in Plano, Texas, and employs roughly 1,500 employees worldwide. It generated revenue of approximately $440 million and income from operations of approximately $50 million in 2022.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.