By Nathan Allen 
 

ABB Ltd. (ABBN.EB) said Tuesday that Italy's Fimer SpA will acquire ABB's solar-inverter business and its associated liabilities.

The Swiss industrial group said it will take an aftertax, non-operational charge of about $430 million in the second quarter from the deal.

Around 75% of the financial hit will come from payments ABB will make to Fimer, and the company expects separation charges of around $40 million starting in the second half of 2019.

The transaction will boost the margin on earnings before interest, taxes and amortization at ABB's electrification division by around 50 basis points, ABB said.

Completion is expected in the first quarter of 2020, ABB said.

 

Write to Nathan Allen at nathan.allen@dowjones.com

 

(END) Dow Jones Newswires

July 09, 2019 01:20 ET (05:20 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
ABB (NYSE:ABB)
Historical Stock Chart
From Apr 2020 to May 2020 Click Here for more ABB Charts.
ABB (NYSE:ABB)
Historical Stock Chart
From May 2019 to May 2020 Click Here for more ABB Charts.