PRESS RELEASE: Siemens AG has approved the sale of Innomotics to KPS Capital Partners, for €3.5 billion.
Innomotics is a global leader in the electrical motor and large-drive business generating €3.3 billion in revenue and employing approximately 15,000 people.
The transaction, subject to customary foreign-investment and merger control approvals, is expected to close in the first half of fiscal 2025.
Ralf P. Thomas, Chief Financial Officer of Siemens AG, expressed satisfaction with the sale, stating, “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 provides clarity for customers and Innomotics employees, paving the way for extensive opportunities for further successful business development. In the future, Siemens and its shareholders will benefit even more from combining the real and digital worlds.”
Siemens made the decision in November 2022 to consolidate its large drives and electric motors businesses and operate them independently outside the core business of Siemens AG. This carve-out has been successfully implemented as planned. Consequently, Siemens has opted not to pursue further preparations for the public listing of Innomotics, as previously announced in November 2023.
The positive responses from customers and the market, along with Innomotics’ growth during the carve-out process, underline its strong positioning as a leading supplier of large drives and motors. The future setup with KPS as the new owner offers Innomotics the ideal framework for sustainable and growth-oriented development.
Michael Reichle, Chief Executive Officer of Innomotics, expressed optimism about the partnership with KPS, stating, “The partnership with KPS will support Innomotics in further expanding our extensive track record of successful technological innovation and providing our customers with world-class products, solutions, and services. 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.”