ABB Sells Steel Structures Business

ABB  ABB, Ltd. (NYSE: ABB – $22.95) said it plans to sell a steel products business for $600 million in cash, part of the company’s efforts to streamline its operations. ABB said it was selling Meyer Steel Structures, which makes steel poles and other products used for power transmission, to Trinity Industries.  Zurich-based ABB acquired Meyer when it purchased Thomas & Betts Corp. in 2012. ABB CEO Ulrich Spiesshofer said the sale – ABB’s largest since it began reviewing its portfolio last year – was needed because Meyer’s products had little in common with the rest of the company’s business, which ranges from power grids to industrial robots. The sale, expected to close in the third quarter, is part of an ongoing strategy for continuous portfolio optimization, according to Spiesshofer. ABB, the world’s largest maker of electricity grids, has been selling off fringe assets, to include ventilation, generator and renewable energy units, to concentrate on its core competencies. While ABB has been one of the few under-performers in the conservative portfolio, the shares can continue to be held for their generous 3.4% annual dividend and long-term appreciation potential.

ABB

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: