According to a statement released by the Swiss engineering and technology firm on Friday, ABB has sold its power conversion division to AcBel Polytech Inc for $505 million.
ABB is concluding the process of streamlining its portfolio of businesses with the sale of this asset. Previously, the company has divested itself of its power transmission unit Dodge and spun off its turbocharging firm Accelleron to its shareholders.
ABB has said that it anticipates the sale of its Power Conversion business in the United States, which produces equipment for telecommunications, data centers, and general industry, would result in a modest non-operational book gain for the company.
The Chief Executive Officer of ABB, Bjorn Rosengren, said that he was “delighted” with the transaction, which finished off divisional portfolio divestments that ABB had scheduled for the end of 2020.
According to ABB, the Power Conversion business, which was purchased by the firm in 2018 as part of its purchase of GE Industrial Solutions, was not one of its core operations.
The division has over 1,500 people working for it throughout the globe, with its headquarters located in Plano, Texas. In 2022, it brought in around $440 million in sales and approximately $50 million in profits from operations.