ABB has completed the divestment of its Power Conversion division to AcBel Polytech Inc. with an enterprise value of $505 million. ABB expects to record a small non-operational book gain in Income from operations on the sale in the third quarter of 2023. With this transaction, ABB has completed all divisional portfolio divestments announced at the end of 2020.
The Power Conversion division is based in Plano, Texas, USA, and employs roughly 1,500 employees worldwide. It generated revenues of approximately $440 million and Income from operations of approximately $50 million in 2022.
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 business is well positioned and currently capitalizing on key technology megatrends such as the rollout of 5G networks, the increased use of cloud computing, and manufacturing automation.
AcBel is a leading provider of switching power supply solutions for a wide range of applications including PCs, smart home appliances, smartphones, servers, and networking equipment. In recent years, AcBel also accelerated its investment in clean and efficient energy solutions for electric vehicles and solar farms, which has enabled AcBel to become a comprehensive power technology expert from power generation and energy storage to high-efficiency power supplies. The company’s mission is to support customers by delivering a competitive edge and revealing new opportunities in today’s smart, always power-available, and data-intensive world while promoting sustainable collaboration with the supply chain, strategic partners, and customers.
ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com
Important notice about forward-looking information
This press release includes forward-looking information which is based on current expectations, estimates and projections about the closing of the sale of the Power Conversion division. Although ABB Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. Undue reliance should not be placed upon any forward-looking statements, including projections, which speak only as of the date made.