Siemens AG has approved the sale of Innomotics – a world-leading electric motors and large drives company – to KPS Capital Partners, LP (KPS).

The contracting parties have signed a corresponding agreement. Accordingly, the purchase price is €3.5 billion. The sale to KPS will likely close in the first half of fiscal 2025. Moreover, it is subject to customary foreign-investment and merger control approvals.

“By selling Innomotics to KPS…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.

In addition, Thomas said, “This decision gives customers and the people who work at Innomotics clarity and paves Innomotics’ way to extensive opportunities. (Particularly), for further successful business development. In the future, Siemens and its shareholders will benefit even more from combining the real and the digital worlds.” 

Brings Value to Customers

In November 2022, Siemens decided to combine its businesses for large drives and electric motors under one roof and set them up independently. Since then, the carve-out has been successfully implemented as planned.

Nonetheless, Siemens decided not to further pursue the preparations for a public listing of Innomotics as announced in November 2023.

There have been positive responses from customers and the market, as well as the growth of Innomotics during the carve-out. This underlines Innomotics’ strong positioning as a leading supplier of large drives and motors capable of addressing its customers’ most demanding technical requirements.

Thus, the future setup with KPS offers Innomotics’ business the best framework conditions for sustainable and growth development.

“The partnership with KPS will support Innomotics in further expanding our extensive track record of successful technological innovation. (Also), 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.”

21 May 2024