ABB Logo

ABB To Acquire Power-One For $1 Billion

ABB Ltd (NYSE:ABB), the Swiss engineering conglomerate, agreed to buy US renewable energy company Power-One for $1.03 billion in cash, in a move to boost its position in solar energy.

ABB Logo

The offer price is 57 percent above Power-One’s closing price on Friday, boosted by $266 million in net cash held by debt-free Power-One. Under the terms of the deal, the Swiss group will pay Power-One’s shareholders $6.35 a share.

“Solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing in on grid parity,” said Joe Hogan, ABB’s chief executive

Power-One is the second largest maker of solar inverters that are used to channel solar energy into electricity grids. Ranging from residential to utility applications, Power-One’s solar inverters broad global manufacturing footprint, and also has a power solutions portfolio that is adjacent to ABB’s power conversion business, ABB said in a statement.

Subject to shareholder and regulatory approval, the deal is expected to close in the second half of 2013.

“The combination of Power-One and ABB Ltd (NYSE:ABB) is fully in line with our 2015 strategy and will create a global player with the scale to compete successfully and create value for customers, employees and shareholders,” Mr. Hogan said.

Mr Hogan acknowledged that ABB Ltd (NYSE:ABB) had been tracking the photovoltaic market for the past three years and was confident that it understood it.

“There are going to be two big disruptors in the energy industry in the next 10 years: shale gas and PV,” said Hogan

Power-One’s sales are expected to hit about $891m in 2013, while ABB Ltd (NYSE:ABB) currently has revenues of around $100m in this area.

Shares of ABB Ltd (NYSE:ABB) closed at 19.93 Swiss francs on Friday, up 6.3 percent so far this year.

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 4/30/2020 or after the next 40 subscribers take advantage whichever comes first – please do not share this discount with others

 

0