ABB has completed its divestment of its solar inverter business to the Italian company FIMER SpA one year after signalling its intent to do so. Fimer will honour ABB’s current warranties for this business segment, and ABB took an after-tax non-operational charge of approximately $430 million for the deal.
The finer financial details of the transaction haven’t been shared, but ABB says the move enables ABB’s Electrification business to improve the focus on priority growth markets and enhance business opportunities for the solar inverter business under FIMER.
ABB’s solar inverter business employs around 800 people in more than 30 countries, with manufacturing and R&D sites located in Italy, India and Finland. It includes the solar inverter business from Power-One acquired by ABB’s Discrete Automation and Motion division in 2013. The business offers a comprehensive portfolio of products, systems, and services for different types of solar installations.
Fimer now owns ABB’s R&D facility in Finland, and PV inverter production sites in Terranuova Bracciolini in Italy, and Bangalore, India. Fimer already has a production site of its own in Vimercate, Italy, and says it now expects more than 7 GW of sales by the end of 2020.
Fimer says it will focus on the digitization of processes for its business, distributed generation and the development of innovative storage systems and micro-grids that can operate both as grid-connected, or independent storage.
“The completion of this divestment is another step forward in our strategy of systematic portfolio management,” said Tarak Mehta, President of ABB’s electrification business . “It strengthens our competitiveness and allows us to focus on other growth segments. ABB will continue to integrate solar power into a range of solutions for smart buildings, energy storage and electric vehicle charging throughout intelligent low- and medium-voltage offering.”