ABB' s solar inverter business employs around 800 people in more than 30 countries and has production and R&D sites in Italy, India and Finland. This includes the solar inverter business of Power-One, which was acquired by ABB's Industrial Automation and Drives division in 2013. The company offers a comprehensive portfolio of products, systems and services for various types of solar installations. The business is now part of ABB's Electrification division and generated sales of around 290 million US dollars last year.

According to ABB and Fimer, they want to ensure a smooth transition for customers and employees. Fimer will honor all existing warranty obligations and ABB will indemnify Fimer for the acquisition of the business and related liabilities.

"The divestment is in line with our strategy of systematic portfolio management to strengthen our competitiveness and focus on improved sales quality and higher growth segments," said Tarak Mehta, ABB.

© ABB

"Solar is an established and important business for Fimer. Therefore, we believe we have found a very good buyer for ABB's solar inverter business," said Tarak Mehta, Head of ABB's Electrification business. "The combination of the two portfolios will enable Fimer to further increase its sales. With our smart low- and medium-voltage offering, we will further integrate solar energy into numerous smart solutions, including smart buildings, energy storage and charging stations for electric vehicles."

As a result of the transaction, ABB expects an after-tax non-operating charge of approximately $430 million in the second quarter of 2019 and a corresponding charge to the 2019 half-year results. Approximately 75% of the charge will be reflected in ABB's cash flow in the form of cash outflows from ABB to Fimer from the closing of the transaction into 2025. In addition, ABB expects to incur separation and settlement costs of up to $40 million from the second half of 2019. Closing is planned for the first quarter of 2020 and is subject to several conditions, including completion of the separation and prior consultation with employee representatives.

Details about Fimer

Fimer was founded in 1942 and has been active in inverter technology since 1983. According to ABB, the company is the eighth largest inverter manufacturer in the world. Its business activities focus on the production of inverters for photovoltaic systems, welding and charging stations for electric vehicles at the operationally integrated Fimer Vimercate plant in Italy.