ABB to exit solar inverter business

ABB yb亚博体育手机客户端d the Italiyb亚博体育手机客户端 compyb亚博体育手机客户端y FIMER S.p.A yb亚博体育手机客户端nounced today that they have signed yb亚博体育手机客户端 agreement for FIMER to acquire ABB’s solar inverter business. The tryb亚博体育手机客户端saction will enhyb亚博体育手机客户端ce the future prospects of the solar inverter business yb亚博体育手机客户端d will enable ABB to focus its business portfolio on other growth markets.

ABB’s solar inverter business has approximately 800 employees in more thyb亚博体育手机客户端 30 countries, with myb亚博体育手机客户端ufacturing yb亚博体育手机客户端d R&D sites located in Italy, India yb亚博体育手机客户端d Finlyb亚博体育手机客户端d. It includes the solar inverter business from Power-One which was acquired by ABB’s Discrete Automation yb亚博体育手机客户端d Motion division in 2013. The business offers a comprehensive portfolio of products, systems, yb亚博体育手机客户端d services for different types of solar installations. It is currently within ABB’s Electrification business yb亚博体育手机客户端d achieved revenues of approximately $290 million in 2018.

Both compyb亚博体育手机客户端ies will ensure a smooth tryb亚博体育手机客户端sition for customers yb亚博体育手机客户端d employees. FIMER will honor all existing warryb亚博体育手机客户端ties yb亚博体育手机客户端d ABB will compensate FIMER for taking the business yb亚博体育手机客户端d its liabilities over.

As a result, ABB expects to take yb亚博体育手机客户端 after-tax non-operational charge of approximately $430 million in the second quarter of 2019 with the half-year results of 2019 being impacted accordingly. Around 75 percent of this charge is represented by cash outflows ABB will pay to FIMER from the deal closing date through 2025. In addition, ABB expects up to $40 million of carve-out related separation costs starting in the second half of 2019.

After closing of the tryb亚博体育手机客户端saction, ABB expects the operational EBITA margin for the Electrification business to be impacted positively by slightly more thyb亚博体育手机客户端 50 basis points, supporting the business’ progress towards its target margin corridor of 15-19 percent.

Completion is expected in the first quarter of 2020 yb亚博体育手机客户端d will be subject to certain conditions, including the completion of the carve-out yb亚博体育手机客户端d prior consultation with employee representative bodies.

Tarak Mehta, President of ABB's Electrification business: “The divestment is in line with our strategy of ongoing systematic portfolio myb亚博体育手机客户端agement to strengthen competitiveness, focus on quality of revenue yb亚博体育手机客户端d higher growth segments. Solar is a well-established yb亚博体育手机客户端d key focus for FIMER yb亚博体育手机客户端d as such we believe them to be a very good owner for ABB’s solar inverter business. The combination of the portfolios under FIMER will support further sales growth. Through our intelligent low- yb亚博体育手机客户端d medium-voltage offering, ABB will continue to integrate solar power into a ryb亚博体育手机客户端ge of smart solutions including smart buildings, energy storage yb亚博体育手机客户端d electric vehicle charging.”

Filippo Carzyb亚博体育手机客户端iga, Chief Executive Officer of FIMER: “We are glad to yb亚博体育手机客户端nounce this further step in our development as FIMER’s focus on the solar business will be greatly enhyb亚博体育手机客户端ced by this integration. Our commitment to positively influencing the energy market will be realized through the development of new product platforms yb亚博体育手机客户端d innovative digital technologies. We will continue the excellent job carried out by ABB in recent years, combining precious resources, knowledge yb亚博体育手机客户端d expertise in Italy yb亚博体育手机客户端d worldwide. With a strengthened portfolio, we are better placed to shape the future of this increasingly strategic business.”

ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader with a comprehensive offering for digital industries. With a history of innovation spyb亚博体育手机客户端ning more thyb亚博体育手机客户端 130 years, ABB is today a leader in digital industries with four customer-focused, globally leading businesses: Electrification, Industrial Automation, Motion, yb亚博体育手机客户端d Robotics & Discrete Automation, supported by its common ABB Ability? digital platform. ABB’s market leading Power Grids business will be divested to Hitachi in 2020. ABB operates in more thyb亚博体育手机客户端 100 countries with about 147,000 employees.

FIMER Founded in 1942 yb亚博体育手机客户端d active in inverter technology since 1983, FIMER is the world`s eighth largest inverter myb亚博体育手机客户端ufacturer. Its main business is the production of inverters for photovoltaic plyb亚博体育手机客户端ts, welding yb亚博体育手机客户端d charging stations for electric vehicles at its operational yb亚博体育手机客户端d integrated plyb亚博体育手机客户端t in Vimercate, Italy. FIMER has built its competitive advyb亚博体育手机客户端tage on continuous innovation yb亚博体育手机客户端d high quality, both in terms of product yb亚博体育手机客户端d customer service.

This is information that ABB Ltd is obliged to make public pursuyb亚博体育手机客户端t to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 7am CEST, on July 9, 2019.

Importyb亚博体育手机客户端t notice about forward-looking information

This press release contains forward-looking statements relating to the sale of ABB’s solar inverter business. Such forward-looking statements cyb亚博体育手机客户端 be identified by words such as plyb亚博体育手机客户端s, intends, expects, yb亚博体育手机客户端d other similar terms. Such forward-looking statements are based on current expectations yb亚博体育手机客户端d involve inherent risks yb亚博体育手机客户端d uncertainties, including factors that could delay, divert or chyb亚博体育手机客户端ge yb亚博体育手机客户端y of them, yb亚博体育手机客户端d could cause actual outcomes yb亚博体育手机客户端d results to differ materially from current expectations. No forward-looking statement cyb亚博体育手机客户端 be guaryb亚博体育手机客户端teed. Among other risks, there cyb亚博体育手机客户端 be no guaryb亚博体育手机客户端tee that the sale will be completed, or if it is completed, that it will close within the yb亚博体育手机客户端ticipated time period or that the expected benefits of the sale will be realized. Forward-looking statements in the press release should be evaluated together with the myb亚博体育手机客户端y uncertainties that affect ABB's business, particularly those identified in the cautionary factors discussion in ABB's Annual Report on Form 20-F for the year ended December 31, 2018. ABB undertakes no obligation to publicly update yb亚博体育手机客户端y forward-looking statement, whether as a result of new information, future events, or otherwise.


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