ABB to Sell EUR 836 Million High-Voltage Cables Business to NKT
NKT Cables is acquiring ABB’s global high-voltage cable system business with a total enterprise value of EUR 836 million.
ABB’s cable system business offers turnkey solutions including design, engineering, supply, installation, commissioning and service.
It had adjusted standalone revenues of USD 524 million (EUR 470m) in 2015, employs around 900 people, and has manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden.
The transfer of assets also includes a new, EUR 124 million cable-laying vessel, currently under construction and expected to be delivered in the first quarter of 2017.
“We are combining two strong cable portfolios rooted in a shared Nordic heritage that will be more competitive on a larger scale under NKT Cables’ ownership, while maintaining access to supply through a long-term strategic partnership,” said ABB CEO Ulrich Spiesshofer.
“The combination of our niche cable system business with the strength of NKT Cables demonstrates our commitment to active portfolio management, a key element of our Next Level strategy.”
The transaction is anticipated to close in Q1 2017, subject to regulatory clearances and fulfilment of the closing conditions.
“As part of the strategic partnership, ABB and NKT Cables will work together on future projects to access market opportunities in areas like sub-sea interconnections and Direct Current (DC) transmission links,” said Claudio Facchin, president of ABB’s Power Grids division.
“This transaction will simplify and focus the Power Grids portfolio.”