ABB has signed an agreement to divest the ABB Full Service business for an undisclosed amount to Nordic Capital Funds. Subject to regulatory approval, the sale is expected to close in the fourth quarter of 2014.
The ABB Full Service unit provides fully outsourced maintenance services to industrial customers. Developed as part of ABB’s life-cycle service offerings, it has become a successful stand-alone business. According to ABB, it’s divesting this service unit because of limited synergies with the company’s core portfolio. ABB will continue to supply its standard life-cycle services for the company’s installed base.
ABB CEO Ulrich Spiesshofer characterized the planned transaction as being entirely in line with the company’s strategy to continuously optimize its portfolio. “With the agreed sale of our Full Service activities,” he said, “we now have found a new home for five businesses in eleven months that have no substantial synergies with the rest of our portfolio, raising about $ 1 billion. The Full Service business will be able to develop further under the ownership of Nordic Capital to the benefit of its customers and employees.”
Nordic Capital Funds have invested in large to mid-market companies since 1989. The company enables value creation in its investments through committed ownership and by targeting strategic development and operational improvements.