Germany's NKT Cables is acquiring ABB’s global high-voltage cable system business with a total enterprise value of US$934 million.
The business is part of ABB’s Power Grids division, which is currently undergoing a strategic review. The sale includes ABB's new cable laying vessel, which is currently under construction.
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 as well as sales offices around the world, and employs around 3200 people.
“We are combining two strong cable portfolios rooted in a shared Nordic heritage that will be more competitive on a larger scale under NKT Cables’ ownership, while maintaining access to supply through a long-term strategic partnership,” said ABB CEO Ulrich Spiesshofer.
ABB’s cable system business offers turnkey solutions including design, engineering, supply, installation, commissioning and service. It had adjusted standalone revenues of $524 million in 2015, employs around 900 people, and has state-of-the art manufacturing and research and development capabilities for high-voltage submarine and underground cables in Karlskrona, Sweden.
The transfer of assets also includes a new, cutting-edge cable-laying vessel, currently under construction. The 140m-long DP3 vessel was ordered in 2015 and is being constructed at the Kleven yard in Norway with delivery expected in 2017.
“As part of the strategic partnership, ABB and NKT Cables will work together on future projects to access market opportunities in areas like sub-sea interconnections and direct current (DC) transmission links”, said Claudio Facchin, president of ABB’s Power Grids division. “This transaction will simplify and focus the Power Grids portfolio.”
The transaction is anticipated to close in Q1 2017, subject to regulatory clearances and conditions.