ABB sells its power conversion division for $505 million
ABB has reached an agreement to sell its Power Conversion division to AcBel Polytech Inc. for USD 505 million in cash.
ABB expects to record a small non-operational book gain in Income from operations on the sale once the transaction is completed. The Power Conversion division, formerly Lineage Power, was acquired by ABB as part of the GE Industrial Solutions acquisition back in 2018 and is not viewed as core to ABB.
It is a global provider of end-to-end power conversion solutions for mission-critical applications in the telecommunications, data center and industrial sectors.
The division is based in Plano, Texas, USA, and employs roughly 1,500 employees worldwide, predominantly at three major sites and the US headquarters. It generated revenues of approximately USD 440 million and Income from operations of approximately USD 50 million in 2022, with a clear focus on the North American market.
“We are very happy to have found an excellent new home for this specialized business that can go from strength to strength under the leadership of AcBel in the future,” says Björn Rosengren, ABB CEO, ina. press release. “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.”
The division's new home, AcBel, is a well-known manufacturer and designer of switching power supplies. Besides offering power solutions for a range of applications including PCs, smart home appliances, smartphones, servers, and networking equipment, AcBel also emphasises opportunities in sustainable energy and electric vehicles.
The transaction is subject to regulatory approvals and is expected to be completed in the second half of 2023.