Sources at Reuters and Bloomberg report that ABB has begun a review of its Integrated DC Power (DC Power Systems and Embedded Power) with a possible future sale as part of its efforts to overhaul the company. The DC Power unit was acquired when ABB bought General Electric Industrial Solutions’ business in 2018.
The unit generates approximately $3 billion of revenue, equivalent to 11% of the company’s total annual sales. The DC power unit’s customers include technology giants such as Google and Cisco Systems Inc. as well as phone carriers such as Verizon Communications Inc., sources say.
Earlier this month, ABB announced that it had signed an agreement to sell its solar inverter business, enabling it to focus its business portfolio on other growth markets. It is also in the middle of selling its power grids business and reorganizing its remaining operations into four divisions.
“ABB can confirm that it has initiated a strategic review for its Integrated DC Power (DC Power Systems and Embedded Power),” said Daniel Smith, a spokesman for the company, in a statement Wednesday. “This, however, is not an indication that this process will definitely end in a transaction, nor a reflection on the timing and terms of any deal.”
The Bloomberg report says, “ABB is working with Citigroup Inc. on the divestment and sales documents were sent out to potential private equity and industrial bidders in the last week, the people said, asking not to be identified because the process is private.” They said a representative from Citigroup declined to comment.
The DC power unit is part of ABB’s electrification division.Tagged with ABB