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ABB Case Study

About ABB

  • ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact
  • ABB has an aggressive growth agenda for renewable technologies
  • ABB operates in more than 100 countries and employs about 124,000 people. 2010 revenue was $31.6 billion
  • ABB is headquartered in Zurich, Switzerland and is publicly listed and traded on the stock exchanges of Zurich, Stockholm and New York

Overview and Challenges

  • ABB was looking to enter the fast growing concentrated solar power (CSP) market by gaining access to market-leading technology that would complement its existing strengths in instrumentation, controls and EPC
  • It was also very important for ABB to allow the company to continue to develop the technology, while retaining the value generated through ABB’s involvement

Our Advice and Execution

  • Based on our significant hands-on investment and structuring expertise, and knowledge of the CSP sector, we tailored a highly customized and structured solution to meet the goals of ABB, Novatec Solar and Transfield (Novatec’s majority shareholder)
  • Through a meaningful minority investment, ABB could achieve significant influence, while retaining the option to acquire 100% at a later stage
  • A comprehensive cooperation agreement brings valuable benefits to both parties and allows ABB to generate and capture synergies
  • Greentech Capital Advisors worked very closely with ABB at all steps along the way, from initial analysis and valuation through final negotiations and deal closing

Enhanced Success

  • ABB completed a unique 35% minority investment, combined with a comprehensive cooperation agreement to capture synergies and drive growth at Novatec Solar
  • The transaction also provides a clear path to control for ABB, through the use of a call option to acquire the remaining shares
  • ABB’s involvement will allow Novatec Solar to grow significantly faster, through validation of the technology and access to ABB’s broad, global customer base