ABB to exit solar inverter business

ABB and the Italian company FIMER S.p.A announced that they have signed an agreement for FIMER to acquire ABB’s solar inverter business.

ABB and the Italian company FIMER S.p.A announced that they have signed an agreement for FIMER to acquire ABB’s solar inverter business. The transaction will enhance the future prospects of the solar inverter business and will enable ABB to focus its business portfolio on other growth markets.

ABB’s solar inverter business  includes the solar inverter business from power-one which was acquired by ABB’s Discrete Automation and Motion division in 2013. It is currently within ABB’s electrification business and achieved revenues of approximately USD 290 million in 2018. Around 75 per cent 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 USD 40 million of carve-out related separation costs starting in the second half of 2019.

Tarak Mehta, President of ABB’s Electrification business, “The divestment is in line with our strategy of ongoing systematic portfolio management to strengthen competitiveness, focus on quality of revenue and higher growth segments. Solar is a well-established and key focus for FIMER. Through our intelligent low-and medium-voltage offering, ABB will continue to integrate solar power into a range of smart solutions including smart buildings, energy storage and electric vehicle charging.”