ABB to acquire the rail business of RGM
31 Jul 2012
Swedish power and automation giant ABB has signed a deal to acquire the rail vehicle power business of Italy-based RGM S.p.A, for an undisclosed sum.
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. On conclusion of the deal, this unit 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 business is not subject to the current transaction.
The acqisition will enable ABB to offer its customers advanced auxiliary converter solutions, particularly in 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, in a statement.
