ABB has reached an agreement to sell its Power Conversion division to AcBel Polytech Inc. for US$ 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.
ABB sells its Power Conversion division
The division is based in Plano, Texas, USA, and employs roughly 1,500 employees worldwide
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 US$ 440 million and income from operations of approximately US$ 50 million in 2022, with a clear focus on the North American market.
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 mega trends, such as the rollout of 5G networks, the increased use of cloud computing and manufacturing automation.
AcBel acquires ABB’s Power Conversion division
“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’s Chief Executive Officer (CEO), adding “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.”
Jerry Hsu, Chairman of AcBel commented: “We sincerely welcome Power Conversion to join the AcBel family. We believe this transaction is beneficial to both parties, as we are highly complementary to each other in product portfolio, customer base and expertise.”
AcBel expands product portfolio and solution offerings
Jerry Hsu adds, “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.”
AcBel is one of the globally renowned companies in the manufacture and design of switching power supplies
AcBel is one of the globally renowned companies 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.
Transaction details
Citi is acting as exclusive financial adviser and Milbank LLP is serving as legal counsel to ABB on the transaction. ABB is a globally renowned technology company 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 approximately 105,000 employees are committed to driving innovations that accelerate industrial transformation.