November/December 2020

NEWS n SIEMENS IS selling its Flender mechanical and electrical drives business to the global investment firm, The Carlyle Group, for €2.02bn. Further details of the transaction have not been disclosed. The deal means that Flender will be returning to private equity ownership 15 years after Siemens bought it, along with the Winergy brand, for €1.2bn from Citigroup Venture Capital Equity Partners. By selling Flender, Siemens says it is taking an important step in executing its Vision 2020+ strategy aimed at making it a more focused technology company. Carlyle says it plans to accelerate Flender’s growth and to develop its strengths by giving it more independence and greater leeway for decisions. “By selling Flender, we’re successfully and rigorously continuing our strategy to become a new, focused Siemens AG,” says president and CEO, Joe Kaeser. “Our plan of fixing the businesses ourselves by introducing the structures used in small and mid-sized companies has proven effective. Now it’s time to position Flender as an independent company and give it the chance to realise future growth opportunities. This fast decision gives customers and employees clarity and a solid foundation for planning.” The sale means that Siemens will no longer pursue its original plan of spinning the business off and listing it publicly, thus offering a faster track to a clearer future for Flender. As part of the sale, Carlyle has agreed to make long-term commitments to Flender and its employees. It says that using its “significant experience” in the industrial sector – in which it has already invested more than $20bn – it will support Flender to achieve its full potential as a standalone company, driving accelerated growth through operational and strategic improvements, including investment into its technology and service platform.” Flender, which was founded more than 120 years ago and is headquartered in Bocholt, Germany, supplies mechanical and electrical drive systems including gearboxes, couplings, generators and associated services. It employs about 8,600 people globally and generated around €2.2bn in revenues during the 2020 fiscal year. It is particulalrly strong in the windpower sector. Siemens sells its Flender gears business to Carlyle for €2bn www.binder-connector.co.uk M8 12 contacts Cable & panel mount connectors IP67 PUR-/PVC cable Carlyle sees strong potential for Flender's gearbox business in the Asian windpower market