ABB to spin off its turbocharging business

21 July 2022

Following a decision by its Board of Directors, ABB announced its intention to spin off Accelleron (formerly ABB Turbocharging), its turbocharging division, to allow both companies “to focus on their respective core strategies and create long-term value for their stakeholders”. The move will enable Accelleron to concentrate exclusively 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.

The proposed spin-off will be completed by way of a dividend in kind of the shares of Accelleron Industries Ltd. to ABB shareholders. Accelleron’s listing on SIX Swiss Exchange in Zurich, Switzerland, is planned for October 3, 2022, and is subject to shareholder and other approvals.

Björn Rosengren, CEO 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.”

Accelleron develops, produces and services turbochargers and large turbocharging components for engines used in the marine, energy and rail sectors. The company has an installed base of over 180,000 turbochargers globally and delivers around 10,000 units per year. In 2021, Accelleron generated revenues of $756 million with an operating margin of 25%.

Source: ABB