•Innomotics to be sold to KPS Capital Partners for €3.5 billion

•Innomotics is a global leader in electrical motor and large-drive business with €3.3 billion in revenue and employs approximately 15,000 people

•Future setup offers the Innomotics business the best framework conditions for sustainable and growth-oriented development

•Transaction expected to close in first half of fiscal 2025

•Another step for Siemens in focusing its portfolio

The Managing Board and Supervisory Board of Siemens AG have approved the sale of Innomotics – a world-leading electric motors and large drives company – to KPS Capital Partners, LP (“KPS”). The contracting parties have signed a corresponding agreement. The purchase price (enterprise value) is €3.5 billion. The sale to KPS is expected to close in the first half of fiscal 2025 and is subject to customary foreign-investment and merger control approvals.

“By selling Innomotics to KPS, I am pleased that we have made further significant progress in optimizing our portfolio. The search for the best new owner has been successful”said Ralf P. Thomas, Chief Financial Officer of Siemens AG. “This decision gives customers and the people who work at Innomotics clarity and paves Innomotics’way to extensive opportunities for further successful business development. In the future, Siemens and its shareholders will benefit even more from combining the real and the digital worlds.”

In November 2022, Siemens decided to combine its businesses for large drives and electric motors under one roof and set them up independently, outside the core business of Siemens AG. Since then, the carve-out has been successfully implemented as planned. Since this agreement, which is beneficial for all parties involved, offers an even faster track to clarity for a successful future, Siemens decided not to further pursue the preparations for a public listing of Innomotics that had been announced in November 2023.

The positive responses from customers and the market, as well as the growth of Innomotics during the carve-out, underline Innomotics’ strong positioning as a leading supplier of large drives and motors capable of addressing its customers’ most demanding technical requirements. The future setup with KPS as the new owner offers Innomotics’ business the best framework conditions for sustainable and growthoriented development.

“The partnership with KPS will support Innomotics in further expanding our extensive track record of successful technological innovation and of providing our customers with world-class products, solutions and services,”said Michael Reichle, Chief Executive Officer of Innomotics.“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.”

This press release is available here https://sie.ag/6ZGNbp