- 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.
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