KPS Capital Partners to acquire Innomotics from Siemens for €3.5bn

KPS Capital Partners, LP has announced a definitive agreement to acquire Innomotics GmbH from Siemens AG for an enterprise value of €3.5 billion. The transaction is slated for completion between Q4 2024 and Q1 2025, pending customary closing conditions and approvals.

Strategic Acquisition to Boost Global Presence

Innomotics, a global leader in electric motor and large drive systems, is known for enhancing customer processes, efficiency, and profitability through its comprehensive portfolio of low and high voltage motors, medium voltage drives, and other components. The company, which is headquartered in Nuremberg, Germany, boasts an annual revenue of approximately €3.3 billion, employs about 15,000 staff, and operates 16 factories across the EMEA, Americas, and Asia-Pacific regions.

Michael Psaros, Co-Founder and Co-Managing Partner of KPS, expressed enthusiasm about the acquisition, stating, “We are excited to acquire Innomotics and create a thriving independent enterprise, built on the foundation of the Company’s 150-year history of unparalleled technological innovation.”

KPS Capital Partners to acquire Innomotics GmbH from Siemens AG for €3.5 billion, aiming to boost its portfolio in electric motor systems.

Leveraging Global Megatrends

Innomotics is positioned to capitalize on global megatrends such as electrification, energy efficiency, digitalization, urbanization, and the commercialization of new energy resources like hydrogen. KPS plans to accelerate Innomotics’ growth trajectory and enhance its value creation opportunities significantly.

Michael Reichle, CEO of Innomotics, remarked on the acquisition, “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.”

Commitment to Technological Leadership and Sustainability

Innomotics aims to continue delivering significant value to its customers globally and to enhance its strong technological leadership. The company is well-equipped to meet the increasing sustainability-oriented demand for highly efficient electrification and energy consumption in both industry and society.

Legal and Financial Advisors

For this transaction, KPS was advised legally by Paul Weiss, Rifkind, Wharton & Garrison LLP, and Gleiss Lutz. Financial advisory services were provided by Bank of America and Lazard. The transaction is supported by committed debt financing from several leading global banks, including Barclays, Citibank, Goldman Sachs, Intesa Sanpaolo, Morgan Stanley, MUFG Bank, Standard Chartered Bank, UBS, and UniCredit.

This acquisition by KPS signifies a strategic expansion into critical industrial technologies that are pivotal for the future of global industries. By leveraging Innomotics’ extensive expertise and innovative capabilities, KPS is set to enhance its position in the global market significantly, tapping into key industrial and technological trends.