The Board of Directors of ABB has decided to spin off the company’s Accelleron (formerly ABB Turbocharging) turbocharging division, allowing ABB to focus on its core electrification and automation business, while Accelleron will concentrate on heavy-duty turbocharging.
The move is intended to create long-term value for all stakeholders, enabling ABB shareholders to realise 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 considers itself as market leader in turbocharging, leading to more growth and higher cash generation.
Björn Rosengren, ABB CEO, said: “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.”
Accelleron’s potential is driven by its long track record in heavy-duty turbocharging for mission-critical applications, enhancing propulsion and increasing fuel efficiency while reducing emissions. Accelleron, renamed earlier this year from ABB Turbocharging, has its roots in the BBC (Brown Boveri) marine turbocharger first developed in 1924. Accelleron has an installed base of over 180,000 turbochargers globally and delivers around 10,000 turbochargers every year.
The company has 2,200 employees across its network of 100 locations in some 50 countries. 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 OEMs and end users as well as to offer attractive returns to its shareholders.
Daniel Bischofberger, CEO Accelleron, said: “Through the spin-off, we will have an even greater focus on our own operations, meeting the critical high-power propulsion needs of our customers while enabling them to achieve their environmental targets. Our strong track record and financial profile position the business to be a leader in the energy transition, developing cutting-edge products and services – both now and far into the future; all while remunerating our shareholders.”
The spin-off is subject to approval by ABB’s shareholders, who will receive one share in Accelleron per 20 ABB shares held.