ABB to Spin Off its Accelleron Turbocharging Business
ABB plans to spin off Accelleron, its turbocharging division, allowing both companies to focus on their core strategies. ABB shareholders will receive 1 Accelleron share for every 20 ABB shares held, with Accelleron's listing on the SIX Swiss Exchange anticipated on October 3, 2022.
Accelleron generated $756 million in revenues with a 25% operating margin in 2021. The spin-off, subject to approval on September 7, 2022, will enable Accelleron to target growth in the large engine industry while providing ABB the opportunity to enhance its electrification and automation focus.
- Accelleron generated $756 million in revenues with a 25% operating margin in 2021.
- Accelleron has strong cash flow, with $163 million from operating activities in 2021.
- ABB shareholders will receive 1 Accelleron share for every 20 ABB shares held, providing direct value realization.
- None.
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ABB to spin off Accelleron and list the company on
SIX Swiss Exchange -
The transaction will allow both ABB and Accelleron to focus on their respective core strategies and long-term value creation for their stakeholders
- ABB’s shareholders can realize the full value of Accelleron while allowing ABB to focus on its core portfolio in the areas of electrification and automation
- Accelleron as the market-leader in heavy-duty turbocharging can focus on reaching its full potential in the large engine industry
- Accelleron is a profitable and cash generative business targeting an attractive dividend policy
- ABB shareholders to receive 1 Accelleron share for every 20 ABB shares they hold
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The spin-off is subject to approval by ABB’s Extraordinary General Meeting (EGM) scheduled for
September 7, 2022 , and subsequent listing planned forOctober 3, 2022
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’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.
Global market leader in the turbocharging sector
Accelleron’s potential is driven by its position, built on its very long track record, as a global market leader in heavy-duty turbocharging for mission-critical applications.
Accelleron develops, produces and services turbochargers and large turbocharging components for engines, which enhance propulsion and increase fuel efficiency while reducing emissions. Its leading products support clients in sectors including marine, energy and rail, helping to provide sustainable and reliable power and highest efficiencies. Accelleron has an installed base of over 180,000 turbochargers globally and delivers around 10,000 turbochargers every year.
The turbochargers are produced, sold and serviced by Accelleron’s ∼2,200 employees across its network of 100 service stations in approximately 50 countries. The business has a significant and increasing presence in key established and growth markets in
Accelleron is considered best-in-class when it comes to reducing fuel consumption and improving the emissions and green profile of its clients’ applications. The company’s outstanding technological competence is increasingly important as pressure grows on its clients to decarbonize, and will remain so, as its turbochargers can also be implemented in alternative and low-carbon fuel applications and drive systems.
Strong financial profile to invest for growth and reward shareholders
Accelleron’s technological pre-eminence is underpinned by market leading investments in research and development, representing approximately 7 percent of its 2021 revenues. Following the spin-off, the company expects that its strong financial profile will allow it to remain at the forefront of innovation by continuing investing in R&D and strengthening partnerships with OEM’s and end users as well as to offer attractive returns to its shareholders.
In 2021, Accelleron generated revenues of
Accelleron leadership
Following the spin-off, Accelleron will be served by an experienced leadership team with deep and long-lasting expertise in the turbocharging field.
Transaction structure
Provided that the spin-off is approved at the EGM and the conditions precedent for it are met, ABB will distribute to its shareholders, on a pro rata basis, as a dividend in kind, 1 Accelleron share for 20 ABB shares held. Further information on the transaction structure and other important dates in connection with the spin-off will follow in the invitation to the EGM and in the Shareholder Information Brochure prepared by ABB in relation to this process.
On
ABB has retained
Accelleron is a global leader in turbocharging technologies and optimization solutions for 0.5 to 80+ MW engines, helping to provide sustainable, efficient and reliable power to the marine, energy, rail, and off-highway sectors. Through its innovative product offerings and research leadership, the company accelerates the decarbonization of the industries it operates in. Accelleron has an installed base of approximately 180,000 turbochargers and a network of more than 100 service stations across 50 countries worldwide. www.accelleron-industries.com
ABB (ABBN:
This press release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy or subscribe for any securities in
Important notice about forward-looking information
This press release includes forward-looking information and statements which are based on current expectations, estimates and projections about the factors that may affect our future performance, including the economic conditions of the regions and industries that are major markets for ABB. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates”, “expects”, “believes”, “estimates”, “plans”, “targets”, “aims” or similar expressions. However, there are risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets or anticipated transactions. Some important factors that could cause such differences include, among others, business risks associated with the COVID-19 pandemic, the volatile global economic environment and political conditions, costs associated with compliance activities, market acceptance of new products and services, changes in governmental regulations and currency exchange rates, the impact of the financial performance of Accelleron, and such other factors as may be discussed from time to time in ABB Ltd’s filings with the
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