Swiss industrial giant ABB is considering selling its robotics division, potentially valued at over $3.5 billion. This move is seen as an alternative to its primary plan of spinning off the unit. ABB is in the process of appointing advisors to manage the sale and potential listing. The valuation aligns with analysts' expectations and could attract interest from private equity firms.
ABB has stated that while it is open to evaluating all proposals, the spin-off remains the preferred strategy for maximizing value. The company had announced plans to spin off the robotics unit by the second quarter of 2026, a significant strategic initiative by CEO Morten Wierod. Wierod aims to focus on more profitable sectors, such as the electrification unit, which benefits from the rise of artificial intelligence and increased data center investments.
The robotics division, led by Marc Segura, represents two-thirds of ABB's Robotics and Discrete Automation segment and employs 7,000 people, with manufacturing centers in China and the U.S. ABB believes that the unit's limited synergy with other businesses makes it suitable for independent operations.
ABB plans to list in Sweden or Switzerland, with other locations not ruled out. In 2024, the division's EBITA was $329 million, a 39% decline due to weak demand in the automotive and consumer electronics sectors.
