HITACHI takes majority stake in ABB Power Grids
Context
Japanese industrial group Hitachi completed the acquisition of an 80.1% majority equity stake in the Power Grids business unit of Swiss engineering company ABB, in a transaction where the target was valued at . Announced in December 2018 and formally closed on July 3, 2020, the transaction established the Swiss-headquartered joint venture Hitachi ABB Power Grids, led by Chief Executive Officer Claudio Facchin. At transaction closing, ABB's Power Grids division generated in annual revenue and approximately in operational EBITA, employing 36,000 people across 100 manufacturing hubs and 200 commercial sales offices serving clients in over 90 countries. The target held roughly 50% of the global installed base in high-voltage direct current transmission systems, spanning 120 individual projects totaling over 130,000 MW of installed capacity. For ABB, the divestment yielded estimated net cash proceeds of $7.6 billion to $7.8 billion returned to shareholders through a 10% share buyback program. In structuring the transaction, Hitachi retained UBS as sole lead financial advisor alongside Goldman Sachs Japan as co-financial advisor. The acquisition enables Hitachi to combine ABB's high-voltage electrical grid hardware and automated transmission systems with its Lumada digital IoT platform, scaling its Social Innovation Business across global utility, transportation, and industrial energy markets.
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Target
ABB Power Grids develops, engineers, and manufactures power transmission and distribution systems for global electrical utility and industrial infrastructures. The business operates through four dedicated operating segments: grid automation systems providing remote control and grid stabilization solutions, grid integration platforms including digital substations and high-voltage direct current systems, high-voltage equipment such as gas-insulated switchgear, and power, distribution, and traction transformers. The company supplies electrical utilities, railway networks, and industrial operators with energy management software to balance transmission loads and integrate renewable energy sources. Its operational model pairs in-house hardware engineering with digital monitoring systems to ensure continuous power grid reliability and modernize power network architectures worldwide.
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REFERENCES
Valuation range: EV 3b - 100b USD
Revenue range: 5b - 100b USD
EBITDA range: 500M - 1b USD
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: abb power grids
Acquirer: hitachi