One more ABB news item. That company has made a flurry of news over the past several weeks. ABB here has completed its portfolio divestments announced after some acquisitions in 2020. This one is the power conversion business for $505 million. ABB Ltd Chairman Peter Voser sees his firm acquiring between 5 to 10 small-to-medium enterprises a year to add to the company’s organic business, he said on Monday.
“Each division of ABB should be active in organic and inorganic strategies, which would see ABB acquiring between five to 10 small-to-medium business every year,” Voser told the Reuters Global Markets Forum on the sidelines of the World Economic Forum’s annual meeting at Davos.
Definitely a major realignment of the company has reached a normal phase.
ABB has reached an agreement to sell its Power Conversion division to AcBel Polytech Inc. for $505 million in cash. The transaction is subject to regulatory approvals and is expected to be completed 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 and is not core to ABB.
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 $440 million and Income from operations of approximately $50 million in 2022, with a clear focus on the North American market.
AcBel is one of the global leaders in the manufacture and design of switching power supplies. Besides offering power solutions for a wide range of applications including PCs, smart home appliances, smartphones, servers, and networking equipment, AcBel also emphasizes opportunities in sustainable energy and electric vehicles. AcBel is headquartered in Taiwan with over 8,800 employees worldwide, the company aims to power the world with sustainable energy and high efficiency power supplies.