Siemens Energy has engaged Goldman Sachs Group to explore the sale of a majority stake in its Transformation of Industry division, which manufactures steam turbines and compressors. The move follows a board meeting on Tuesday to assess strategic options for the unit, which contributed €2.7 billion in revenue during the six months ended March, representing 13.5% of the group's €20 billion in total sales.
The division, which employs 17,000 people and operates as the world's largest maker of industrial steam turbines and generators and the second-largest compressor manufacturer, could be valued at more than €10 billion ($11.7 billion) if a majority stake is sold. Reports indicate Siemens Energy may divest around 60% of the division initially, retaining a 40% stake. Several private equity firms, including CVC Capital Partners, EQT, Bain Capital, Brookfield and KKR, are evaluating potential bids, though no formal offers have been confirmed.
The decision to explore a stake sale aligns with internal assessments suggesting that a spin-off or initial public offering could enhance margins and shareholder value over the long term. The move follows prior media reports, including coverage by Manager Magazin roughly two months ago, which indicated Siemens Energy was considering structural changes to the division.
