Electric motors & large drives division
Siemens sells Innomotics to private equity firm
Siemens is restructuring its drive technology portfolio: Less than two months after announcing the acquisition of ebm-papst's Industrial Drive Technology (IDT) division, Siemens is selling its Innomotics business for large drives and certain electric motors to KPS Capital Partners.
The sale of Innomotics to KPS is expected to be completed in the first half of the 2025 fiscal year and is subject to customary foreign-investment and merger control approvals. The purchase price (enterprise value) amounts to 3.5 billion euros.
Siemens positioned Innomotics as a legally independent subsidiary in mid-2023. Innomotics is made up of the previous corresponding businesses of the Siemens Large Drives Applications and Digital Industries units as well as the legally independent Siemens companies Sykatec and Weiss Spindeltechnologie. Innomotics' portfolio includes low- to high-voltage motors, geared motors, medium-voltage inverters and motor spindles as well as project and service support. The company's operational headquarters, with around 15,000 employees worldwide and a current annual turnover of 3.3 billion euros, is located in Nuremberg.
“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 P. Thomas, Chief Financial Officer of Siemens AG. “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.”
In November 2022, Siemens decided to combine its businesses for large drives and electric motors under one roof and set them up independently, outside the core business of Siemens AG. Since then, the carve-out has been implemented as planned. Since this agreement offers an even faster track to clarity for a successful future, Siemens decided not to further pursue the preparations for a public listing of Innomotics that had been announced in November 2023.
The positive responses from customers and the market, as well as the growth of Innomotics during the carve-out, underline Innomotics’ strong positioning as a supplier of large drives and motors capable of addressing its customers’ most demanding technical requirements. The future setup with KPS as the new owner offers Innomotics’ business the best framework conditions for sustainable and growth-oriented development.
“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.”
