After its IPO later this year, ABB’s e-mobility business will embark on an acquisition spree in order to meet its lofty sales targets, said the company’s CEO.
The company, which manufactures quick electric chargers for automobiles, buses, and trucks, announced plans to invest USD 750 million in expanding its operations during its capital markets day.
“Our objective is to expand organically as well as through acquisitions. In an interview, Frank Muehlon stated that “we must do both tasks at the speed we have set for ourselves.”
We have significant global coverage, but we’d like to undertake bolt-on acquisitions as well as make investments in firms or increase our stakes in them in the future. There will be more to come.”
According to Muehlon, the company, which plans to go public in Switzerland during the first half of 2022, had already looked at 50 possible targets last year.
Investors expect e-mobility, which had a volume of USD 323 million in 2021, to increase revenues by 40-45 percent this year.
It then intends to achieve a mid-term growth rate of 25% to 30% each year. Both ambitions would put it ahead of the rest of the market, which has grown at a rate of about 23% per year over the last five years.
“We are confident because of the backlog,” Muehlon remarked. “Last year, we had USD 584 million in orders that we couldn’t turn into income.”
The division competes with firms such as ChargePoint, Tritium, and Alpitronic, as well as charging station providers Shell, Ionity, and transportation operator Transdev.
Muehlon also stated that he was interested in expanding E-service Mobility’s offering, which offered better recurring revenues and profit margins.
This would include software to assist fleet customers in managing their EVs, he said.
As per the report published by Facts and Factors, the global electric vehicle charging station market was estimated at USD 18.22 billion in 2021 and is expected to hit USD 115 billion by the end of 2028, expanding at CAGR by 35% between 2021 and 2028.
