• PowerTech Converter (PTC) is a leading supplier of auxiliary power converters and aftermarket services for the railway industry;
• Acquisition expands ABB Traction division’s market access and complements its product portfolio.
The acquisition is an important part of ABB Motion’s external growth strategy.
Owned by RCP, PTC (powertech-converter.com) is headquartered in Berlin, Germany and has other facilities in Holzkirchen, Germany and Mount Olive, USA. With around 280 employees, the business generated revenues of approximately €60 million in 2021. Financial terms of the transaction were not disclosed, and the deal is expected to close in the fourth quarter of 2022, subject to clearance from relevant regulatory and anti-trust authorities.
“Through the acquisition, ABB will expand its strong presence in the rail segment and will be better positioned to seize growth opportunities resulting from increasing industry demand for sustainable transport solutions,” said Tarak Mehta, President ABB Motion.
“We are excited about the opportunity to welcome the PTC team to ABB’s worldwide family and look forward to supporting their innovation and growth journey. PTC’s advanced portfolio, which includes PowerBriX with its silicon carbide (SiC) technology, is highly complementary to our own offering and will allow our Traction division to provide customers with one of the most comprehensive ranges of auxiliary power converters on the market. In addition, customers will benefit from additional technologies in the future, resulting from ABB and PTC’s combined efforts to innovate and develop more energy efficient solutions,” said Edgar Keller, President of ABB’s Traction division.
Auxiliary converters are an essential part of any rail vehicle, as they supply the power needed for vital systems that improve passenger comfort, such as the HVAC system, lighting, safety equipment, doors, as well as charging of the vehicle's batteries.
ABB (abb.com) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries.
Important notice about forward-looking information
This press release contains forward-looking statements relating to the acquisition by ABB of PowerTech Converter. Such forward-looking statements can be identified by words such as plans, intends, expects, and other similar terms. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. Among other risks, there can be no guarantee that the expected benefits of the acquisition will be realized. No forward-looking statement can be guaranteed. Forward-looking statements in the press release should be evaluated together with the many uncertainties that affect ABB's business, particularly those identified in the cautionary factors discussion in ABB's Annual Report on Form 20-F. ABB undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.