Siemens Energy hires Goldman for steam turbine unit stake sale; stock up premarket

Siemens Energy has enlisted the services of Goldman Sachs to potentially sell a majority stake in its steam turbine business, according to Bloomberg. The company is currently assembling a board meeting to deliberate on the best course of action for the divestment of its Transformation of Industry division. Several private equity firms, such as CVC Capital Partners, EQT, Bain Capital, Brookfield, and KKR, are being considered as potential bidders, with any sale expected to be worth over €10 billion.

This move follows a report from Manager Magazin two months prior, which stated that Siemens Energy was contemplating spinning off the division, citing higher margins and increased shareholder value in the long run. The division, which is the world's largest manufacturer of industrial steam turbines and generators, as well as the second-largest maker of compressors, generated €2.7 billion in revenue during the six months ending March and accounted for 13.5% of the group's total sales.

The unit employs 17,000 people, and Siemens Energy is reportedly considering selling around 60% of the division's shares as a first step, with a potential spin-off or initial public offering as possible outcomes. The company would retain the remaining 40% stake.