Munich-based Siemens has announced the sale of its large motors and drives division, recently renamed Innomotics, to a private equity firm, New York's KPS Capital Partners. The transaction, for a €3.5 billion enterprise purchase price. is expected to close by Q2 of 2025, subject to required merger control and foreign investment approvals.
Last fall, the Wall Street Journal reported that KPS, dedicated to "Transforming Manufacturing and Industrial Businesses", had raised more than $22 billion since its founding in 1991, and recently secured premium terms for $9.7 billion "to back businesses facing supply-chain distruptions and higher interest rates." 2023 investments included Princess Yachts and Oldcastle BuildingEnvelope.
In November 2022, Siemens split the motor and drive division off from its main operations, renaming it Innomotics, and made preparations for a public listing of Innomotics that was annnounced in November 2023. Instead, however, Siemens decided that the sale to KPS was "more beneficial to all parties involved."
Per Ralf P. Thomas, Siemens AG CFO, “By selling Innomotics to KPS, I am pleased that we have made further significant progress in optimizing our portfolio. The search for the best new owner has been successful,...This decision gives customers and the people who work at Innomotics clarity and paves Innomotics’ way to extensive opportunities for further successful business development. In the future, Siemens and its shareholders will benefit even more from combining the real and the digital worlds.”
The company reports Innomotics as having $3.3b in revenue and employing 15,000 people (approx.)
Read the full press relese here:
Comments