- ABB Ltd ABB agreed to sell its non-core Power Conversion division to AcBel Polytech Inc for $505 million in cash.
- The transaction will likely close in the second half of 2023.
- Upon closing, ABB expects to record a small non-operational book gain in Income from operations on the sale.
- The Power Conversion division, formerly Lineage Power, was acquired by ABB as part of the GE Industrial Solutions acquisition in 2018.
- The division is based in Plano, Texas, and employs roughly 1,500 employees worldwide, predominantly at three major sites and the U.S. headquarters.
- Power Conversion generated revenues of $440 million and Income from operations of $50 million in 2022.
- The division currently capitalized on the rollout of 5G networks, the increased use of cloud computing, and manufacturing automation.
- ABB CEO Björn Rosengren said, "We are also delighted to complete all divisional portfolio divestments announced at the end of 2020, including the sale of Dodge and the spin-off of Accelleron."
- AcBel Chair Jerry Hsu said, "By combining AcBel's core capabilities in smart manufacturing and original design manufacturing with Power Conversion's cutting-edge technologies in premium and high-quality products along with its advanced system solutions, we will be able to establish a more comprehensive product portfolio and expand our solution offerings to continue to create value for our customers and investors."
- Price Action: ABB shares traded higher by 0.66% at $33.69 in the premarket on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
