ABB has reached an agreement to sell its Power Conversion division to Taiwan-based AcBel Polytech Inc. 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 ABB 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.
The Power Conversion division 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.
Established in 1981, AcBel is headquartered in Taiwan with Technology Design Centers located in China and U.S. and over 8,800 employees worldwide. AcBel manufactures and designs 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 sees opportunities in sustainable energy and electric vehicles.