ABB in Cevian’s Sights May Result in Push to Break up

From Bloomberg: “… With faster growth projected for ABB’s automation operations and its power business facing decline, a split may make sense, said William Mackie, a London-based analyst at Kepler Chevreux. Automation specialists have an enterprise value of about 2.3 times revenue, compared to a multiple of about 1 for power-equipment makers, according to Mathias Leijon, chief investment officer at ABB shareholder Nordea Bank AB. ABB now is valued at about 1.3 times its revenue in the past 12 months.
Cevian may decide just to push for cost cuts and improved operational efficiency, according to someone who has worked with Cevian in the past. ABB’s earnings before interest, taxes, depreciation and amortization declined to 12 percent of revenue last year from a high of 15.8 percent in 2011. Competitor Rockwell Automation Inc.’s adjusted Ebitda last year was 21 percent of revenue, according to data compiled by Bloomberg. … “

Read more: http://www.bloomberg.com/news/articles/2015-07-21/abb-in-cevian-s-sights-may-result-in-push-to-break-up-real-m-a

Why this is important for your business

When a company is downsizing key decisions have to be made. Budgets are cut way back. The flow of communication changes; products and projects are postponed or cancelled. Divisions, teams or offices are consolidated, outsourced or cut. Companies would have to adapt to the change, be acquired or go out of business.

Are you willing to let your uninterruptible power supply (UPS) system and service be handled by a company with uncertainty? Can your company afford the time and money when the UPS goes down?

Don’t compromise service and quality when it can be prevented

Nationwide Power is a leading national service company serving the critical power/UPS battery backup.

For seamless protection of your company’s critical power requirements, please contact Nationwide Power now for contract rollover information and pricing.