ABB to divest power conversion division to AcBel Polytech for $505m
Swedish-Swiss multinational corporation ABB has agreed to divest its power conversion division to AcBel Polytech, a Taiwan-based switching power supplies manufacturer, in an all-cash transaction valued at $505 million.
The transaction marks the final divestment of ABB’s previously announced division portfolio measures.
The power conversion division offers end-to-end power conversion solutions for mission-critical applications in the data center, telecommunications, and industrial segments.
Based in Plano, Texas, the power conversion division has approximately 1,500 workers globally, mainly at three major sites and the US headquarters.
Björn Rosengren — ABB CEO said: “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.”
“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 generated revenues of around $440 million and income from operations of around $50 million in 2022, predominantly from the North American market.
Jerry Hsu — AcBel Polytech Chairman 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.”
Citi is serving as exclusive financial adviser to ABB while Milbank is acting as legal counsel.
The transaction is likely to complete in the second half of 2023, subject to regulatory approvals and other customary closing conditions.
In 2018, ABB acquired the power conversion division, previously Lineage Power, as part of the GE Industrial Solutions acquisition.
In November 2022, ABB announced sale of the company’s three divisions, namely power conversion, Dodge, and Accelleron spin-off as part of its 2030 sustainability targets.