ABB acquires Italian RGM
RGM, headquartered in Genova, is Italy’s largest supplier of auxiliary converters that provide on-board energy supply on underground rail, light rail vehicles, and mainline trains and locomotives. This business line, employing 68 employees, will become part of the ABB Group. The parties agreed not to disclose the purchase price of the transaction, which is subject to customary regulatory approvals.
RGM is also an important supplier of smaller power supplies, components, and other power-electronic equipment to various industries. This part of RGM’s business is not subject to the current transaction.
ABB’s customers will benefit from advanced auxiliary converter solutions, in particular for markets with direct current (DC) line voltage, through RGM’s expertise in power electronics and rolling stock.
“With the combination, offering a wider combined portfolio of auxiliary converters and traction converters, we are supporting our growth story in traction,” said Ulrich Spiesshofer, head of ABB’s Discrete Automation and Motion division. “The RGM Polycontrol team will bring to ABB important engineering and manufacturing expertise as well as a strong track record in the Italian market. The acquisition is in line with our divisional strategy to expand our technology platform and solutions offering in the attractive global and regional rail market.”
ABB has grown its rail activities at an annual rate of 30% in recent years, evolving into a major supplier to numerous train manufacturers and rail operators. In 2011, ABB secured more than $1.1 billion in orders in the rail business.
“Combining our auxiliary converter business with the ABB Group will bring considerable advantages for this business and our customers,” said Giuseppe Guerra, Owner and CEO of RGM. “The high-quality products developed by RGM will gain global reach through ABB’s sales channels and our customers will have access to a wider rail portfolio from a single source.”
The acquisition is expected to be completed by the third quarter 2012.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people. In Italy, ABB employs more than 5,700 people in more than 30 locations all over the country.
Acquisition transaction management: CDI Global Geneva