The Managing Board and Supervisory Board of Siemens AG have approved the sale of Innomotics – an electric motors and large drives company – to KPS Capital Partners, LP (KPS). The contracting parties have signed a corresponding agreement. The purchase price (enterprise value) is €3.5 billion. 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.
According to a Siemens press release, the move is meant to help the company optimize its portfolio. “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,” said Ralf P. Thomas, chief financial officer of Siemens AG.
In November 2022, Siemens combined 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. Siemens has decided not to further pursue the preparations for a public listing of Innomotics that had been announced in November 2023.
According to Siemens, KPS as the new owner offers Innomotics' business the best framework conditions for sustainable and growth-oriented development. Innomotics currently employs approximately 15,000 people.
