ABB has sold its metering business to Ruhrgas Industries of Essen, Germany, for $244 million on a cash and debt free basis.
‘Water and electricity metering is no longer a core business for ABB, and its divestment is part of our strategy to focus on power and automation technology products for our utilities and industry customers,’ said JÃ¼rgen Dormann, ABB’s chairman and CEO.
ABB said the proceeds from the sale would be used to further reduce its net debt.
ABB’s global water and electricity meter business is headquartered in Luton, UK, and employs about 3,800 people in more than 30 countries.
The business, part of the Automation Technology Products division, reported revenues of about $450 million in 2001.
The divestment is subject to customary regulatory approvals.