(Bloomberg) -- ABB Ltd. is preparing to kick off a fresh attempt to sell its power-conversion unit as Chief Executive Officer Bjoern Rosengren continues to offload peripheral businesses, according to people familiar with the matter.
The Swiss engineering company plans to start soliciting interest in the business in September, the people said, asking not to be identified because the information is private. ABB is working with Citigroup Inc. on the proposed divestment, according to the people.
The unit may attract interest from buyout firms and some select companies, including telecommunication players and Asian suitors, they said. ABB pulled the plug on a previous divestment attempt in 2019.
ABB’s power-conversion business, which was acquired as part of a $2.6 billion deal for General Electric Co.’s industrial solutions business in 2018, helps telecommunications and technology companies run infrastructure and use energy more efficiently.
Clients have included phone carriers such as Verizon Communications Inc., as well as technology giants including Google and Cisco Systems Inc. The unit was formerly known as Lineage Power Holdings, which GE acquired in 2011.
No final decision has been made, and ABB could opt to keep the business for now, the people said. A spokesman for ABB confirmed that the company is looking to dispose of the division in the second half of 2022, declining to comment further. A representative for Citigroup declined to comment.
ABB in November 2020 announced plans to exit three divisions as part of Rosengren’s plan to boost the Swiss engineer’s profitability by focusing on core businesses. ABB sold its Dodge mechanical power transmission business, but postponed the listing of its electric car charging operations. It also delayed a decision on its turbocharging unit, though a spinoff slated to go ahead in October.
(Updates with Citigroup response in sixth paragraph.)
©2022 Bloomberg L.P.