Siemens sells Innomotics to KPS Capital Partners for $3.8 billion

Siemens, the renowned German industrial company, has made a significant announcement regarding the sale of its subsidiary, Innomotics, to the private US equity firm KPS Capital Partners for a staggering 3.5 billion Euros ($3.8 billion). Innomotics specializes in the production of motors and systems utilized in various industries like chemicals, oil, utilities, and automotive, with a workforce of around 15,000 employees.

The decision to sell Innomotics was given the green light by both the managing and supervisory boards of Siemens. The completion of this transaction is expected in the first half of the fiscal year 2025. Ralf Thomas, the Chief Financial Officer of Siemens, expressed contentment with the sale, emphasizing its role in optimizing the company's portfolio.

Established in 2023 as a wholly-owned subsidiary of Siemens, Innomotics was initially intended to go public. However, Siemens pivoted from this plan and opted for the sale to KPS Capital Partners instead.

The sale of Innomotics by Siemens marks a strategic move aimed at enhancing the company's operational focus and financial performance. This development underscores Siemens' commitment to refining its business portfolio and pursuing growth opportunities in the evolving industrial landscape.