ABB to spin off Accelleron turbocharging business
By Becky Schultz21 July 2022
The Board of Directors of global technology company ABB have chosen to spin off the company’s Accelleron turbocharging business (formerly ABB Turbocharging) to allow both companies “to focus on their respective core strategies and create long-term value for their stakeholders,” the organizations announced today. The move will enable Accelleron to concentrate on the large engine industry, where it is known as a global supplier of heavy-duty turbocharging, while ABB will maintain its focus on electrification and automation.
“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,” stated Björn Rosengren, CEO of ABB. “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 develops, produces and services turbochargers and large turbocharging components to enhance propulsion and increase fuel efficiency while reducing engine emissions. It supports customers in the marine, energy and rail sectors. The company has an installed base of over 180000 turbochargers globally and delivers around 10000 units per year. In 2021, it generated revenues of $756 million with an operating margin of 25%.
Following the spinoff, Accelleron intends to continue its investments in R&D and in strengthening its partnerships with OEMs and end users.
“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,” said Daniel Bischofberger, CEO of Accelleron. “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 spinoff, Bischofberger will maintain his position as CEO and Adrian Grossenbacher will continue as chief financial officer. The Board of Directors of Accelleron will be chaired by Oliver Riemenschneider, who previously served as CEO of ABB Turbocharging.
The proposed spinoff will be completed by way of a dividend in kind of Accelleron Industries Ltd.’s shares to ABB shareholders. Its listing on SIX Swiss Exchange in Zurich, Switzerland, is planned for October 3, and is subject to shareholder and other approvals.