ABB to Divest Solar Inverter Business to Fimer SpA
July 09 2019 - 1:35AM
Dow Jones News
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.
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