RCP signs an agreement to sell its portfolio company PowerTech Converter to ABB

PowerTech Converter was setup as a standalone organization, re-aligned its strategic market positioning through separation into different business units, streamlined and improved its product and service portfolio, and optimized processes and cost structures of key functional areas such as R&D, procurement, inventory, manufacturing, and quality management.

Today, PowerTech Converter is a leading independent supplier of auxiliary power converters for the railway industry worldwide. Its products and services are used by renowned rail vehicle OEMs and operators and form an essential part of any rail vehicle supplying the power needed for vital systems such as for passenger comfort (e.g., heating, ventilation, and air condition), lighting, and doors. Hence, PowerTech Converter’s products ensure a reliable rail transportation system.

RCP acquired PowerTech Converter (Berlin, Germany) from Knorr-Bremse Group via a complex carve-out transaction in 2019. Back then, the company was in financial distress and generated a significant loss. Based on RCP’s carve-out and turnaround expertise as well as its active ownership, the company completed a successful rapid transformation. PowerTech Converter was setup as a standalone organization, re-aligned its strategic market positioning through separation into different business units, streamlined and improved its product and service portfolio, and optimized processes and cost structures of key functional areas such as R&D, procurement, inventory, manufacturing, and quality management.

Today, PowerTech Converter is a leading independent supplier of auxiliary power converters for the railway industry worldwide. Its products and services are used by renowned rail vehicle OEMs and operators and form an essential part of any rail vehicle supplying the power needed for vital systems such as for passenger comfort (e.g., heating, ventilation, and air condition), lighting, and doors. Hence, PowerTech Converter’s products ensure a reliable rail transportation system.

“First and foremost, we want to thank the management team and employees of PowerTech Converter that were key and contributed most to a challenging but very successful transformation of the business during our ownership. We have accompanied PowerTech Converter over the past years and supported management in strengthening the company’s market position, fostering innovation in energy efficient products and technologies. We are delighted that ABB gave credit to this development and will support the business in its further innovation and growth journey”, said Ulrich Radlmayr, Managing Partner of RCP.

“We are excited about the opportunity to welcome the PowerTech Converter team to ABB’s worldwide family and look forward to supporting their innovation and growth journey. PowerTech Converter’s advanced portfolio is highly complementary to our own offering and will allow our Traction division to provide customers with one of the most comprehensive ranges of auxiliary power converters on the market. In addition, customers will benefit from additional technologies in the future, resulting from ABB and PowerTech Converter’s combined efforts to innovate and develop more energy efficient solutions”, said Edgar Keller, President of ABB’s Traction division.

Ebner Stolz acted as M&A advisor and FMDH as legal advisor to RCP.

About RCP

Based in Munich, Germany, RCP is an independent and internationally operating private equity firm for alternative investments across industries in Europe. RCP’s investment activities focus on special situations such as carve-outs, unresolved successions, and restructuring situations.

About PowerTech Converter

PowerTech Converter is headquartered in Berlin, Germany, and has further locations in Holzkirchen, Germany, and Mount Olive, USA. With around 280 employees, the company develops and manufactures auxiliary power converters and aftermarket services for the railway industry worldwide, generating revenues of approximately €60 million in 2021.

About ABB

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries.