ABB To Spin Off Turbocharging Division
ABB announced July 21 that it would spin off Accelleron (formerly ABB Turbocharging), its turbocharging division, by way of a dividend in kind of Accelleron Industries Ltd.’s shares to ABB shareholders. Accelleron’s listing on SIX Swiss Exchange in Zurich is planned for October 3 and is subject to approval by ABB’s shareholders at a meeting scheduled for September 7, among other conditions.
“The proposed spin-off of Accelleron represents a unique opportunity for both companies, allowing them to focus on their respective core strategies and create long-term value for their stakeholders,” ABB said in the announcement. “ABB’s shareholders will be able to realize the full value of Accelleron, while ABB continues to simplify its portfolio and focus on the megatrends of electrification and automation. Accelleron will be able to concentrate exclusively on reaching its full potential in the large engine industry where the company is known as the market leader in heavy-duty turbocharging, with a compelling growth profile, high cash generation and an attractive expected dividend policy.”
Björn Rosengren, CEO of ABB, commented, “After careful consideration involving a dual-track process, we have concluded that spinning off Accelleron is the best way forward for Accelleron itself and for ABB’s shareholders. This decision also forms a key part of ABB’s active portfolio management, while allowing our shareholders to actively participate in the future growth of this Swiss champion.”
When ABB rebranded its turbocharging division as Accelleron in February, it said it was contemplating selling or spinning off the business this year.
In 2021, the turbocharging division generated revenues of $756 million with an operating margin of 25 percent.