Siemens to Sell Innomotics Motor Drive Business for €3.5bn

Siemens has announced its decision to sell its Innomotics motor drive business to a private equity group, KPS Capital Partners, for a substantial €3.5 billion. This move comes as a strategic decision by Siemens to optimize its portfolio and focus on core operations. The deal, which has been in the works since November 2022, marks a significant milestone for both companies.

The Innomotics business unit, which generates €3.3 billion in revenue from selling large drives and motors, currently employs around 15,000 people. By selling the unit to KPS Capital Partners, Siemens aims to provide clarity to customers and employees while opening up new opportunities for business development. Ralf Thomas, Chief Financial Officer of Siemens, expressed his satisfaction with the outcome, stating that the search for the right buyer has been successful.

In a strategic shift, Siemens had initially planned to list Innomotics as an independent entity in November 2023. However, the company later decided to consolidate its businesses for large drives and electric motors under one roof and pursue a sale instead. This decision reflects Siemens' commitment to enhancing its operational efficiency and focusing on areas of strategic importance.

Michael Reichle, Chief Executive Officer of Innomotics, highlighted the potential for growth and innovation that the partnership with KPS Capital Partners brings. He emphasized the company's dedication to providing world-class products and services to customers worldwide, leveraging its strong technological leadership in electrification and energy efficiency.

The sale to KPS Capital Partners is expected to be finalized in the first half of fiscal 2025, pending regulatory approvals. This acquisition will not only benefit Innomotics in terms of strategic alignment and growth opportunities but also enable Siemens to further leverage the synergies between its physical and digital operations, creating value for both the company and its shareholders.