ABB to sell two cable companies in Norway and Sweden to Draka
ABB, the global technology company, announced it has agreed to sell two cable companies in Norway and Sweden to Draka
Holding N.V, a leading cable manufacturer based in Amsterdam, the Netherlands.
The two companies, ABB Kabel in Nassjo and Ystad, Sweden and ABB Norsk Kabel in Drammen, Loesmoen and Arnes, Norway,
have a combined annual turnover of approximately $ 210 mm and employ some 850 people. The value of the transaction
was not disclosed. The sale is subject to regulatory approvals in the respective countries.
The two companies make cable products used in a variety of applications, including installations in office and
commercial buildings, homes and factories, in electricity distribution systems, the oil and gas industry and in
computer and telecommunications networks. Draka Holding is a leading cable manufacturer with about 8,000 employees
and activities in more than 20 countries.
The transaction does not affect ABB's high-voltage cable business, which develops and manufactures products primarily
for long-distance power transmission projects. Also not included are subsea cables used for High-Voltage Direct
Current (HVDC) power transmission and in the offshore oil and gas sector, as well as the specialised cables used in
ABB's new high-voltage Powerformer generator and Dryformer power transformer.
Goran Lindahl, ABB's President and CEO, said the divestiture was in line with the company's efforts to focus on
businesses that have clear synergies with other parts of the company, and to build on its technology leadership.
"Draka is a strong partner who will be able to grow this business even further," Lindahl said.
"We will concentrate on cable technologies that can be applied to core areas like power transmission and offshore oil
and gas, and where we have a clear technology lead, as we do for example with the Powerformer." "These two companies
have a leading position in the Nordic cable market and will be a solid base for consolidating our strong position in
Europe, especiallyin the Nordic countries together with Draka's Finnish and Danish operations" said Jan van Kesteren,
Chairman of Draka's Board of Management. "This acquisition fits our strategic goals as the companies have strong
management and good growth potential."
ABB is a globalised technology and engineering company serving customers in power transmission and distribution;
automation; oil, gas, and petrochemicals; industrial products and contracting; and in financial services. Power
generation customers are served by the joint venture ABB ALSTOM POWER.
The ABB Group employs about 170,000 people in more than 100 countries.
