The sale is still subject to regulatory approvals and is expected to be completed in the second half of 2023, ABB said in a statement on Friday. ABB expects a small non-operating book gain on closing of the transaction.
The Power Conversion division, formerly Lineage Power, essentially comprises the business with power converters that are used in the telecommunications sector, in data centers and in industry. It came to ABB with the acquisition of General Electric Industrial Solutions (GEIS) in 2018. The division is based in Plano, Texas, USA, and employs approximately 1,500 people worldwide.
In 2022, the division generated sales of approximately $440 million and operating income of approximately $50 million, with a clear focus on the North American market. According to ABB, the division is not active in Switzerland and has no employees.
According to the announcement, the buyer AcBel is one of the world’s leading companies in the development and manufacture of switched-mode power supplies. The company offers power solutions for a wide range of applications such as personal computers, smart home devices, smartphones, servers and network equipment, and is also active in the renewable energy and electric vehicle sectors.
AcBel is headquartered in Taiwan and employs over 8,800 people worldwide. The company’s goal is to supply the world with sustainable energy and provide highly efficient power supplies.
At the end of 2020, ABB had already put the Turbocharging, Mechanical Power Transmission divisions – known under the brand name Dodge – and Power Conversion in the shop window. As is well known, the turbocharger business has now been spun off and has been listed on the Swiss stock exchange as an independent company under the name Accelleron since the beginning of October.
The sale of the Mechanical Power Transmission Division was also completed in early November 2021, bringing ABB a pre-tax book gain of approximately $2.2 billion. With the divestment of the Power Conversion converter business, the third part of the divestment program has now also been completed.
What is still pending is the IPO of the e-mobility division, which includes the business with charging stations for electric vehicles. However, ABB is only aiming for a partial IPO on the Swiss stock exchange, the majority should remain in ABB’s hands.
The announcement did not cause any major waves on the Swiss stock exchange in early trading. The ABB share price rose at around 9:15 a.m. by 0.4 percent to CHF 30.81. Meanwhile, the overall market (SMI) gained 0.3 percent.