ABB today agreed to sell its Building Systems business in Sweden, Norway, Denmark, Finland (including Russia and the Baltics) to YIT Corporation of Helsinki, Finland, for approximately $233 million (203 million Euros).
Final cash proceeds received at closing date will be adjusted for net working capital and are expected to be around $170 million. The sale is subject to customary competition authority approvals and will be used to reduce ABB’s debt.
‘This sale is another step towards reaching our divestment targets for 2003, and gives these businesses a better opportunity to grow,’ said Peter Voser, ABB’s chief financial officer.
ABB Building Systems in the Nordic region employs about 9,000 people in more than 100 locations. The business reported revenues of $1.1 billion in 2002.