ABB Buys Italian Rolling Stock Power Business
07/30/2012| 06:45am US/Eastern
Power and technology company ABB Ltd (ABBN.VX) Monday said it has agreed to acquire the rail vehicle power business of Italy-based RGM S.p.A. for an undisclosed sum.
- The deal is expected to be closed by the third quarter of 2012, ABB said.
- RGM, headquartered in Genoa, is Italy's largest supplier of auxiliary converters that provide on-board energy supply on underground rail, light rail vehicles, and mainline trains and locomotives.
- This business line, employing 68 employees, will become part of the ABB Group.
- The parties agreed not to disclose the purchase price of the transaction, which is subject to customary regulatory approvals.
- RGM is also an important supplier of smaller power supplies, components, and other power-electronic equipment to various industries. This part of RGM's business is not subject to the current transaction.
- ABB said its customers will benefit from advanced auxiliary converter solutions, in particular for markets with direct current (DC) line voltage, through RGM's expertise in power electronics and rolling stock.
- "With the combination, offering a wider combined portfolio of auxiliary converters and traction converters, we are supporting our growth story in traction," said Ulrich Spiesshofer, head of ABB's Discrete Automation and Motion division.
- "The RGM Polycontrol team will bring to ABB important engineering and manufacturing expertise as well as a strong track record in the Italian market. The acquisition is in line with our divisional strategy to expand our technology platform and solutions offering in the attractive global and regional rail market."
- ABB has grown its rail activities at an annual rate of 30% in recent years, evolving into a major supplier to numerous train manufacturers and rail operators. In 2011, ABB secured more than $1.1 billion in orders in the rail business.
-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47; email@example.com
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