ABB to buy power electronics business from Siemens Gamesa
ZURICH, Dec 18 (Reuters) -ABB ABBN.S has agreed to acquire the power electronics unit of Gamesa Electric in Spain from Siemens Gamesa ENR1n.DE to boost its position in the renewable power conversion technology market, the Swiss engineering group said on Wednesday.
The transaction is expected to close in the second half of 2025, ABB said. Financial terms were not disclosed.
"It's a different type of technology which allows you to be a bit more cost-efficient," said Brandon Spencer, president of ABB's motion business area, noting that his company saw growth picking up in renewables over the medium to long term.
"Some of their products complement what we have, so we will be able to offer a wider solution set to a wider customer base."
Profitability in Gamesa Electric's power electronics unit is below the margin of ABB's motion business area, but the company sees lots of scope to improve it, Spencer said.
Gamesa Electric's power electronics unit was solely focused on serving Siemens Gamesa as a supply unit, but ABB has the means to cater for the entire renewables space, he added.
"We continue to look at bolt-on acquisitions in the motors, drives, converters, generators and traction businesses."
The deal complements ABB's expertise with over 100 specialized engineers and two converter factories in Madrid and Valencia, for a total workforce of some 400 employees, including resources in India, China, United States and Australia, it said.
Gamesa Electric's power electronics business reported revenues of around 170 million euros ($178.50 million) for the year ending Sept. 30, ABB said in a statement.
($1 = 0.9524 euros)
Reporting by Oliver Hirt
Editing by Dave Graham
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