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ABB rebrands turbocharging business "Accelleron", decision expected in Q1

Published 02/15/2022, 03:28 AM
Updated 02/15/2022, 03:30 AM
© Reuters. FILE PHOTO: The logo of Hitachi ABB is seen at an office building in Zurich, Switzerland September 10, 2020. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - Swiss automation group ABB on Tuesday rebranded its turbocharging business "Accelleron" and said it expected to make the final decision on whether to sell or spin it off towards the end of the first quarter.

"Whichever path is chosen by ABB to separate the business, this process should be completed in the first half of 2022", the group said in a statement.

The separation of the business, which competes with Britain's Napier, part of Wabtec, Germany's KBB and Japan's Mitsubishi Heavy Industries, is part of ABB Chief Executive Bjorn Rosengren's plan to focus the portfolio on electrification and automation.

The turbocharging business employs over 2,300 people and had around $750 million in sales during 2021.

ABB did not give any figures on profitability, but has said previously that the business has an "attractive" profit margin.

Rosengren said two weeks ago a spinoff onto the SIX Swiss Exchange during the second quarter of this year was the most likely outcome.

ABB has already sold its power transmission unit Dodge for $2.9 billion to RBC Bearings (NASDAQ:ROLL) as part of the overhaul.

It has also touted its E-Mobility electric charging business, which it is seeking to float on the SIX Swiss Exchange later this year.

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