ABB to Spin Off its Accelleron Turbocharging Business
Following a decision by its Board of Directors, ABB today announces its intention to spin off Accelleron (formerly ABB Turbocharging), its market-leading turbocharging division, by way of a dividend in kind of Accelleron Industries Ltd’s shares to ABB’s shareholders. Accelleron’s listing on SIX Swiss Exchange in Zurich is planned for October 3, 2022, and is subject to, among others, approval by ABB’s shareholders at an Extraordinary General Meeting scheduled for September 7, 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.
Björn Rosengren, Chief Executive Officer 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.”
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 Asia.
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 $756 million with an operating margin of 25 percent. These results are comprised of resilient service revenues accounting for about 75 percent of 2021 revenues. Accelleron has a profitability above sector average with robust cashflow generation with Cash Flows from Operating Activities of $163 million in 2021. This will allow Accelleron to adopt an attractive dividend policy.
Daniel Bischofberger, CEO of Accelleron, commented: “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.”
Following the spin-off, Accelleron will be served by an experienced leadership team with deep and long-lasting expertise in the turbocharging field.
Daniel Bischofberger as Chief Executive Officer and Adrian Grossenbacher as Chief Financial Officer are part of the Executive Committee. The designated Board of Directors of Accelleron will be chaired by Oliver Riemenschneider, who contributes over 35 years industry experience and has previously served as CEO of ABB Turbocharging since 2011. He will be complemented by a diverse and highly experienced group of directors namely Monika Krüsi, Gabriele Sons, Bo Cerup-Simonsen, Stefano Pampalone and Detlef Trefzger.
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 August 31, 2022, ABB has scheduled a Capital Markets Day focusing on Accelleron in order to provide further information on the company and the transaction.
ABB has retained Credit Suisse and Goldman Sachs International as exclusive financial advisors on the transaction. Credit Suisse will be acting as listing agent.
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: SIX Swiss Exchange) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com
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 the United States of America (“U.S.”), Switzerland, Sweden or in any other jurisdiction. Any securities to be distributed in connection with this transaction have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the laws of any state of the U.S. Neither ABB Ltd nor Accelleron Industries Ltd intends to register any securities referred to herein in the U.S.
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 U.S. Securities and Exchange Commission, including its Annual Reports on Form 20-F. Although each of ABB Ltd and Accelleron Industries Ltd believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. The foregoing list of factors is not exclusive and undue reliance should not be placed upon any forward-looking statements, including projections, which speak only as of the date made. ABB Ltd and Accelleron Industries Ltd do not undertake to update, and expressly disclaim any duty to update, any forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
Phone: +41 43 317 71 11
Phone: +41 43 317 71 11
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
European Commission Approves Celltrion Healthcare’s Vegzelma™ (CT-P16, biosimilar bevacizumab) for the Treatment of Multiple Types of Cancer19.8.2022 04:47:00 CEST | Press release
Celltrion Healthcare announced today that the European Commission (EC) has approved Vegzelma™ (CT-P16), a biosimilar bevacizumab referencing EU-approved Avastin®, for the treatment of metastatic breast cancer, non-small cell lung cancer, advanced and/or metastatic renal cell cancer, metastatic carcinoma of the colon or rectum, ovarian cancer and cervical cancer. “The European Commission’s approval of Vegzelma™ will increase access to treatment for patients living with certain types of cancer at an affordable price,” said Kevin Byoung Seo Choi, Senior Vice President and Head of Marketing Division at Celltrion Healthcare. “With proven similarities in efficacy and safety compared to the reference product Avastin®, Vegzelma™ will be available to treat some of the most commonly diagnosed cancers, which collectively affect hundreds of thousands of European patients each year.” The EC approval of Vegzelma™ follows the recommendation for marketing authorisation issued by the Committee for Medi
Dermaliq Therapeutics announces first patient dosed in Phase 1b/2 trial evaluating DLQ02 for treatment of plaque psoriasis18.8.2022 18:27:00 CEST | Press release
Dermaliq Therapeutics, Inc. (Dermaliq), a private, clinical stage pharmaceutical company with a focus on dermatology, today announced first patient dosed in a Phase 1b/2a trial with DLQ02, a topical calcineurin inhibitor. The trial is designed to evaluate the safety, systemic absorption, pharmacodynamics, and clinical efficacy of DLQ02 in patients with plaque psoriasis. “DLQ02 evaluates for the first time hyliQTM, a novel platform technology in dermatology to create best in-class topical therapies with superior bioavailability,” said Betsy Hughes-Formella, PhD, Chief Scientific Officer at Dermaliq. “Calcineurin inhibitors for the treatment of psoriasis are a standard of care when given orally, albeit being associated with significant risk for systemic side effects. DLQ02 is designed to overcome the challenges of topical delivery of this drug class with reduced risk profiles. We are convinced DLQ02 has the potential to transform topical psoriasis therapy for millions of patients.” The r
Aero Secures $65M in Series B Financing to Accelerate the Future of Premium Air Travel18.8.2022 18:00:00 CEST | Press release
Aero Technologies, Inc. the next-generation premium air travel company, which serves routes in both the US and Europe, today announced a $65M capital raise, $50M in Series B funding and $15M in convertible notes, for a total post-money valuation of $300M. The funding round was co-led by AlbaCore Capital Group, one of Europe’s leading alternative investment firms, and returning investors Expa and Keyframe Capital, with new investment from Capital One Ventures. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220818005095/en/ (Photo: Business Wire) Inspired by the golden age of aviation and designed for modern life, Aero is redefining semi-private air travel. Aero serves premium leisure travelers through private terminals, enriching the experience with personalized Concierge services - from booking to touchdown. With its fleet of sleek, black planes, Aero offers elevated, effortless guest experiences to curated destinations with
Veristat is Recognized on the 2022 Inc. 5000 List of America’s Fastest-Growing Private Companies18.8.2022 15:49:00 CEST | Press release
Veristat, global experts in clinical development, registration and post-marketing solutions proudly announces its recognition once again by Inc. Magazine as one of the 5000 fastest-growing private companies in the United States. Since its first appearance on the list in 2015, Veristat has significantly expanded in size, geographic reach and service offering to swiftly guide novel therapies through their clinical development process to regulatory approval and commercialization. Veristat’s team of scientific experts works collaboratively with clients in the biotech and pharmaceutical industries to overcome the many challenges associated with bringing to market products that address current medical shortcomings and maintain their good standing. “Being recognized as one of America’s Fastest-Growing Private Companies is a testament to Veristat’s ability to deliver innovative solutions, bold thinking and versatile engagement models to our clients,” stated Patrick Flanagan, Chief Executive Of
Methane Electrolysis Can Decarbonize LNG/LPG Imports and Achieve EU’s Climate Targets18.8.2022 14:00:00 CEST | Press release
To become independent of Russian natural gas imports by 2027, the European Union is increasing near-term imports of US or Azerbaijan liquefied natural gas (LNG) or liquefied petroleum gas (LPG). The main element of LNG, methane, is the second leading greenhouse gas contributing to climate change. Environmental organizations warn that long-term supply contracts for the fossil LNG will undermine the European Green Deal. The German company Graforce has developed a methane electrolysis technology (plasmalysis) that uses LNG or LPG to produce hydrogen and solid carbon for dioxide-free energy generation. Compared to water electrolysis, plasmalysis requires only one fifth the energy to produce the same amount of hydrogen. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220818005013/en/ Graforce has developed methane electrolysis plants. Errected at LNG terminals or other decentralized locations, they can decarbonize energy supply, a
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom