FILE PHOTO: The logo of Swiss power technology and automation group ABB is seen at the Swiss Economic Forum (SEF) conference in Interlaken, Switzerland May 24, 2019. REUTERS/Arnd Wiegmann
ZURICH (Reuters) - ABB will accelerate its acquisition drive, Chief Executive Bjorn Rosengren told Reuters in an interview, as the Swiss engineering group seeks to grow faster by tapping into mega-trends like shrinking workforces and decarbonisation. The maker of factory robots and charging stations for electric cars unveiled higher sales and profit goals at its capital markets day on Tuesday. "We are absolutely going to accelerate M&A," Rosengren said. "Otherwise I would be very disappointed. "The target will be more on the small to medium size, maybe around a billion dollars in transaction size. We are looking at five to 10 acquisitions per year." ABB has so made only two deals this year, but was looking to strengthen its offerings in robotics, motion and electrification, the former Sandvik CEO added.
ABB picked up $2.9 billion from selling its Dodge power transmission business. It is also divesting its power conversion division as well as potentially selling its turbo charging business. The company is also pressing ahead with its plans to float its e-mobility electric vehicle charging business, which it hopes to list in Switzerland in the first half of 2022. The business had revenue of $263 million in the 12 months to September and has been growing sales by nearly 60% per year. ABB, which competes with Germany's Siemens and France's Schneider Electric, would keep a majority stake after the initial public offering. "It is a core part of ABB. But it needs a different kind of management to the rest of the group," Rosengren said. ABB has made an offer to a potential chairman of the new company, he added.
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