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Siemens considering sale of Flender: Reuters
Posted on Wednesday, 14 October 2020 13:28
Siemens is discussing a potential disposal of its Germany-based transmission’s manufacturer Flender in a deal worth EUR 1.50 billion to EUR 2.00 billion, people close to the matter told Reuters.
According to the sources, the company has hired Triton, Carlyle, CVC Capital Partners and Brookfield and expects to receive final offers next week.
Flender is expected to post earnings before interest, taxes, depreciation and amortisation of EUR 200.00 million and could be valued at between 8.0x and 9.0x this amount, the insiders noted, asking not to be identified as the situation is still private.
The company supplies Winergy branded gear boxes and generators for wind turbines, gears and couplings for cranes, ships, oil and gas production, as well as components for the chemicals, pharma, cement and food industries.
Siemens has been trying to simplify its structure in recent years, including listing its turbines and generators supplier Siemens Energy and separating Healthineers in 2018.
In May it was reported that Flender was planning a listing on an unknown stock exchange, with shareholders planning on voting at the next annual shareholders meeting in February 2021.
Reuters’ sources said a stock market flotation may still be an option if valuation expectations are not met.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 16 deals targeting speed changer, industrial high-speed drive, and gear manufacturers announced worldwide in 2020 to date.
In the largest of these, Sinotruk Jinan Power has agreed to acquire Chinese automotive gearbox manufacturer China National Heavy Duty Truck Group Datong Gear for CNY 1.39 billion (USD 206.69 million).
This was followed by Jiangsu Pacific Precision Forging issuing new shares to Jiangsu Ocean Investment and others in a deal worth CNY 1.01 billion.
Other targets included MBI, Schmiedetechnik Plettenberg and Hangzhou Linjiang Qianjin Gearbox.
© Zephus Ltd