Siemens Energy has engaged Goldman Sachs to advise on the sale of a minority stake in its Transformation of Industry division, which produces steam turbines and compressors.
The move follows a board meeting scheduled for Tuesday to assess strategic alternatives for the unit, which generated €2.7 billion in revenue during the six months ended March—13.5% of the group’s total €20 billion sales. The division employs 17,000 people and ranks as the world’s largest manufacturer of industrial steam turbines and generators, and the second-largest producer of compressors.
Private equity firms including CVC Capital Partners, EQT, Bain Capital, Brookfield and KKR are among the entities evaluating potential proposals, according to sources familiar with the matter. A prior report by Manager Magazin indicated Siemens Energy had considered divesting up to 60% of the division in an initial phase, either through a spinoff or initial public offering, while retaining the remaining 40% stake.
The valuation for the stake sale could exceed €10 billion, or approximately $11.7 billion at current exchange rates. Siemens Energy’s shares rose 1.4% at the start of trading in Germany on the day of the announcement.
