ABB sells its power conversion division for $505 million

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FILE PHOTO: Logo of Swiss power technology and automation group ABB is seen at the Swiss Economic Forum conference in Interlaken

ZURICH (Reuters) -ABB has sold its U.S.-based power conversion business to AcBel Polytech Inc for $505 million, the Swiss engineering and technology company said on Friday.

Taiwan-based AcBel said the deal would help complete its products portfolio, covering areas including 5G, data centres, high-performance computing and electric vehicle charging while accelerating an upgrade of the power supply industry and development of the North American market.

The deal, which is subject to U.S. and Taiwan authorities’ approval, is expected to be completed in the second half of 2023, AcBel said in a statement.

The sale is the last part of ABB’s measures to trim its portfolio of companies which saw it sell its power transmission unit Dodge and spin off its turbocharging business Accelleron to shareholders.

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ABB said it expects to make a small non-operational book gain from the sale of the Conversion business, which provides products for telecoms, data centres and general industry.

Chief Executive Bjorn Rosengren said he was “delighted” with the deal which completed divisional portfolio divestments announced by ABB at the end of 2020.

Power Conversion was acquired by ABB as part of the GE Industrial Solutions acquisition in 2018 and was not core to ABB, the company said.

The division is based in Plano, Texas, and employs roughly 1,500 employees worldwide. It generated revenue of approximately $440 million and income from operations of approximately $50 million in 2022.

(Reporting by John Revill, editing by Rachel More and Emelia Sithole-Matarise)