ABB to sell high-voltage cable system business to Denmark's NKT Cables for $934 mn
21 September 2016
Swedish power and automation company ABB today struck a deal to sell its high-voltage cable system business to Denmark-based NKT Cables for $934 million (€836 million).
The business is part of ABB's Power Grids division, which is currently undergoing a strategic review.
The acquisition also includes ABB's new, cutting-edge cable-laying vessel, currently under construction.
ABB said that it will work with NKT on future projects in areas like sub-sea interconnections and direct current transmission links.
ABB, which operates in more than 100 countries and employs about 135,000 people, said that high voltage cables are key components in sustainable energy networks, used for transmitting large amounts of electricity over long distances.
ABB's cable system business offers turnkey solutions including design, engineering, supply, installation, commissioning and service.
It had revenues of $524 million in 2015, employs around 900 people, and has state-of-the art manufacturing and R&D capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden.
''ABB's high-voltage cable business will add considerable strength to our portfolio and bring us a world-class manufacturing operation. We will leverage the technology, domain competence and highly skilled workforce to grow this business,'' said Michael Hedegaard Lyng, president and CEO of NKT Cables.
NKT Cables designs, manufactures and supplies power cables for low, medium and high-voltage solutions mainly in the Alternating Current (AC) area.
It has major production facilities in Europe and China, and employs around 3,200 people. In 2015, it generated revenues of €1.2 billion.