ABB has reached an agreement to sell its Power Conversion division to AcBel Polytech 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.
“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,” said Björn Rosengren, ABB CEO. “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.”