ABB continues with its strategy to divest parts of the company that have limited synergies with its core portfolio, letting go of the fifth such business in less than a year. The power and automation supplier has agreed to sell the ABB Full Service business for an undisclosed amount to Nordic Capital.
The ABB Full Service business, developed adjacent to the company’s lifecycle service business, provides fully outsourced industrial maintenance services. ABB will continue to supply its standard lifecycle services for the company’s installed base.
“The divestment is fully in line with our strategy to continuously optimize our portfolio. With the agreed sale of our Full Service activities, we now have found a new home for five businesses in 11 months that have no substantial synergies with the rest of our portfolio, raising about $1 billion,” said Ulrich Spiesshofer, ABB’s CEO. “The Full Service business will be able to develop further under the ownership of Nordic Capital to the benefit of its customers and employees.”
Other recent divestitures have been pieces of companies that ABB has acquired over the past few years: Power One’s Power Solutions business, Thomas & Betts’ HVAC business, and Baldor’s generator-set business. ABB just announced earlier this week that it completed its sale of the Meyer Steel Structures business of Thomas & Betts, which it acquired in 2012.
“We are very excited to work together with the Full Service management team to invest in further accelerated growth and development of the Full Service business,” said John Hedberg, principal, NC Advisory AB, advisor to the Nordic Capital Funds. “There is a clear value in establishing an independent business, fully focused on developing its customer offering and thereby solidifying its position as a global leader in the growing market for industrialized maintenance.”
The sale is expected to close in the fourth quarter of 2014, subject to regulatory approval.