Siemens opts to sell Innomotics motor drive business for €3.5bn
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Siemens is to sell its Innomotics motor drive business to a private equity group for €3.5bn rather than float the unit as an independent company.
The deal to sell the Innomotics business unit has been in the works since November 2022. The unit has €3.3bn in revenue selling large drives and motors and employs approximately 15,000 people.
It will be sold to KPS Capital Partners which also owns battery systems and engine maker Briggs and Stratton and Humvee maker AM General as well as aluminium producer Speira.
“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,” said Ralf Thomas, Chief Financial Officer of Siemens. “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.”
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In November 2022, Siemens decided to combine its businesses for large drives and electric motors under one roof and set them up independently outside of its core business. Siemens decided not to further pursue the preparations for a public listing of Innomotics that had been announced in November 2023.
“The partnership with KPS will support Innomotics in further expanding our extensive track record of successful technological innovation and of providing our customers with world-class products, solutions and services,” said Michael Reichle, Chief Executive Officer of Innomotics.
“We look forward to working closely together with KPS and our talented people as we continue to deliver significant value for our customers around the world and enhance Innomotics’ strong technological leadership. Innomotics will continue to benefit from strong growth potential driven by the sustainability-oriented demand for highly efficient electrification and energy consumption in industry and society.”
The sale to KPS is expected to close in the first half of fiscal 2025 and is subject to customary foreign-investment and merger control approvals.
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