Siemens buys Flender Holding for 1.2 billion euros
Munich, Germany—Siemens reports that it’s expanding its industrial drive business by acquiring Flender Holding GmbH from London-based Citigroup Venture Capital (CVC) Equity Partners for 1.2 billion euros, pending approval by antitrust authorities.
Munich, Germany— Siemens reports that it’s expanding its industrial drive business by acquiring Flender Holding GmbH from London-based Citigroup Venture Capital (CVC) Equity Partners for 1.2 billion euros, pending approval by antitrust authorities. Flender and its activities will become the 11th division of Siemens’ Automation and Drives Group (A&D). Siemens says the acquisition will expand its drive technologies with gear systems, and enhance the benefits delivered by its drive solutions.
Flender has 6,700 employees at 80 locations worldwide, and posted sales of 1.012 billion euros in its 2003-04 fiscal year. It supplies mechanical and electrical drive equipment used in mechanical engineering, basic materials processing, transport and conveying systems, and also in power generation. Flender concentrates on gear technology, ranging from couplings and industrial gear units to gear motors and large gears for ships and wind power stations. Flender adds that its regional activities are mainly concentrated in Germany, France, China, India, and the U.S.
Because gears are an integral component of many applications and systems in production and logistics, Siemens adds that buying Flender expands its automation know how in complete drive systems. Siemens says this will allow it to optimize its customers’ installations over the whole drive train. For example, integrated development and engineering will lead to smaller, lighter, long-living and high-performing drive systems, contributing to the productivity and competitiveness of industrial customers in all industries.
'This acquisition is an important step, which ideally rounds off our drive systems portfolio. With gear technology, we will not only be in a position to serve a rapidly growing part of the market, but also will be able to tailor our whole range of products and systems even better to the requirements of our customers in all sales industries and regions,” says Helmut Gierse, Siemens A&D’s group president. “This will enable us to expand our position as the world's leading supplier in the field of industrial automation.'
Dr. Winfried Walzer, Flender’s CEO, adds that, 'This transaction is an excellent strategic combination for the Flender Group and promises to accelerate the increasingly global nature of Flender's business activities. Since the beginning of CVC Equity Partners' association with Flender in 1999, Flender has achieved significant improvements in efficiency, productivity, and cash flow generation, while extending its global reach. We view the acquisition of Flender by Siemens as an exciting step which will further develop the company's activities to the benefit of our customers, suppliers and employees.'
Control Engineering Daily News Desk
Jim Montague, news editor
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