KPS Capital Partners, LP has signed a definitive agreement to acquire Innomotics GmbH from Siemens AG for an enterprise value of €3.5 billion.
Completion of the transaction is expected in calendar Q4 2024 or Q1 2025 and is subject to customary closing conditions and approvals, according to a news release.
Innomotics is a leading global supplier of mission-critical electric motor and large drive systems that optimize customers’ processes, uptime, efficiency and profitability. The company manufactures a complete portfolio of low voltage motors, high voltage motors, medium voltage drives and other components, in addition to providing value-added customer services and solutions. The company serves large, highly technical end-markets with its engineering expertise and industry-leading track record of successful projects.
Paul Weiss, Rifkind, Wharton & Garrison LLP and Gleiss Lutz served as legal counsel and Bank of America and Lazard served as financial advisors to KPS. Committed debt financing to support the transaction has been provided by Barclays, Citibank, Goldman Sachs, Intesa Sanpaolo, Morgan Stanley, MUFG Bank, Standard Chartered Bank, UBS and UniCredit.
Innomotics’ products and services are capable of addressing its customers’ most demanding requirements while enabling significant energy savings, decarbonization and sustainability. Headquartered in Nuremberg, Germany, Innomotics generates approximately €3.3 billion in annual revenue, employs approximately 15,000 people and operates 16 factories across the EMEA, Americas and Asia-Pacific regions.
Michael Psaros, Co-Founder and Co-Managing Partner of KPS, said, “The company is well-positioned to capitalize on the global megatrends of electrification, energy efficiency, digitalization, urbanization and the commercialization of new energy resources such as hydrogen. We look forward to working with Innomotics’ senior management and stakeholders to aggressively accelerate the Company’s growth trajectory and value creation opportunities. We thank Siemens for entrusting KPS with its iconic heritage business created by Werner von Siemens. We are proud that the world’s largest industrial companies continue to view KPS as a peer manufacturer and trusted partner.”
Michael Reichle, Chief Executive Officer of Innomotics, said, “KPS, with its demonstrated track record of manufacturing excellence and its global platform, is the ideal owner for the new Innomotics. We will extend our extensive track record of successful technological innovation and providing our customers with world-class products, solutions and services.” Reichle continued, “We look forward to working closely together with KPS and our talented people as we continue to deliver significant value for our customers around the world and enhance Innomotics’ strong technological leadership. Innomotics will continue to benefit from strong growth potential driven by the sustainability-oriented demand for highly efficient electrification and energy consumption in industry and society.”
