ABB sells US power conversion division for $505m
Swiss power giant ABB has agreed to sell its US-based Power Conversion division for $505m to a Taiwanese manufacturer.
The deal covers end-to-end power conversion solutions for mission-critical applications in the telecommunications, data centre and industrial sectors. The business is currently capitalizing on key technology mega trends such as the rollout of 5G networks, the increased use of cloud computing and manufacturing automation.
The sale to AcBel Polytech of Taiwan is subject to regulatory approvals and is expected to be completed in the second half of 2023.
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 $440m and income of $50m 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.” Those were mechanical power and turbo charger companies.
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.”
“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,” he said.
AcBel designs and manufactures power supplies for PCs, smart home appliances, smartphones, servers, and networking equipment.
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