ABB sells solar inverter business to FIMER
Post date: 09/07/2019 - 17:31
The Swiss ABB Asea Brown Boveri Ltd. and the Italian company FIMER S.p.A. have signed an agreement for the sale of ABB's solar inverter business to FIMER. The transaction will »improve the future prospects of the solar inverter business« and enable ABB to »continue to consistently align its business portfolio with other growth markets,« the company announced.
ABB employs around 800 people in the solar inverter division in more than 30 countries and has production and R&D sites in Italy, India and Finland. This includes Power-One's solar inverter business, which was acquired by the Industrial Automation and Drives division in 2013. The company offers a comprehensive portfolio of products, systems and services for various types of solar systems. The business is now part of ABB's Electrification business and generated sales of approximately $290 million in 2018.
FIMER is reported to have fulfilled all existing guarantee obligations and ABB will indemnify FIMER for the acquisition of the business and related liabilities.
ABB expects the transaction to result in a non-operating charge, net of tax, of approximately $430 million in the second quarter of 2019 and a corresponding charge to its half year results in 2019. Approximately 75 percent of the charge will be reflected in ABB's cash flow - in the form of cash outflows from ABB to FIMER from the closing of the transaction into 2025, and up to $40 million in settlement costs from the second half of 2019 onwards. The transaction is expected to close in the first quarter of 2020.
»Solar is an established and important business of FIMER,« said Tarak Mehta, head of ABB's Electrification business. »Therefore, we expect to have found a very good buyer for ABB's solar inverter business.« ABB's low and medium voltage offering will further integrate solar energy into numerous intelligent solutions, including energy storage and charging stations for electric vehicles.
FIMER was founded in 1942 and has been active in inverter technology since 1983. According to the company, it is the eighth largest inverter manufacturer in the world. The main focus of its business activities is the production of inverters for photovoltaic systems, welding and charging stations for electric vehicles at FIMER's operational integrated plant in Vimercate, Italy.