New York, NY (May 16, 2024) -- KPS Capital Partners, LP (“KPS”) announced today that, through a newly formed affiliate, it has signed a definitive agreement to acquire Innomotics GmbH (“Innomotics” or the “Company”) from Siemens AG (“Siemens”) (XTRA: SIE) 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.
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. 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, “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. Innomotics is a global industry leader in electric motors and large drives. In many ways, KPS is investing in the future of the 21st Century through Innomotics. 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.”
Mr. Psaros continued, “The acquisition of Innomotics is another demonstration of the power of the KPS platform in Europe. Since 2020, KPS has acquired or committed to acquire 17 businesses for an aggregate value exceeding $11.5 billion from leading corporate sellers in Germany, Belgium, Italy, Ireland, Norway, Switzerland and the United Kingdom.”
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.” Mr. 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.”
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.
About Innomotics
Innomotics GmbH is a globally leading supplier of electric motor and large-drive systems. The Company unites the power of deep engineering expertise and leading innovation in electrical solutions across industries and regions. With its trusted legacy of more than 150 years of engineering expertise, Innomotics has long been part of the backbone of reliable motion for industries and infrastructure worldwide. By combining the Company’s most efficient products and proven expertise with ground-breaking innovation, Innomotics is persistently scaling up industrial efficiency, electrification, sustainability, decarbonization and digitalization for its customers. Innomotics has its operational headquarters in Nuremberg, Germany, and is a wholly owned subsidiary of Siemens AG. The Company employs about 15,000 people worldwide. With 16 factories and a comprehensive sales-and-service setup in 49 countries, Innomotics has a well-balanced global footprint across regions and industries in a resilient and growing market. Further information is available at www.innomotics.com.
About KPS Capital Partners, LP in Germany
KPS, with its European headquarters in Frankfurt, Germany, has acquired business from Germany’s leading industrial companies. KPS acquired Chassis Brakes International from Robert Bosch GmbH, Waupaca Foundry from thyssenkrupp AG, TaylorMade from adidas AG, and recently announced the pending acquisition of Sport Group from Equistone Partners. KPS former portfolio companies have also completed acquisitions of leading German companies, including American & Efird‘s acquisition of German-based Gütermann Holdings SE and Motor Coach Industries’ strategic partnership and minority ownership structure with Daimler AG in the North American over-the-road coach business. Currently, KPS portfolio companies generate €2.0 billion in revenue and operate nine manufacturing facilities with over 5,200 employees in Germany (excluding the pending acquisitions of Sport Group and Innomotics).
About Siemens AG
Siemens is a leading technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, Siemens creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €77.8 billion and net income of €8.5 billion. As of September 30, 2023, Siemens employed around 320,000 people worldwide. Further information is available at www.siemens.com.
Forward-Looking Statements
This press release contains “forward-looking statements,” including statements regarding the contemplated transaction. Forward-looking statements can generally be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “potential,” “seek,” “should,” “think,” “will,” “would” and similar expressions, or they may use future dates. Forward-looking statements in this document include, without limitation, statements regarding the Company’s expectations as to the completion, timing and anticipated impacts of the contemplated transaction. These forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include, among other things: the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement or could otherwise cause the transaction contemplated herein to fail to close; the inability of the Company, KPS or Siemens to satisfy the conditions to closing; and other risks and uncertainties. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All forward-looking statements in this document are qualified in their entirety by this cautionary statement.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.8 billion of assets under management (as of June 30, 2024). For nearly three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $19.3 billion, operate 219 manufacturing facilities in 26 countries, and have approximately 47,000 employees, directly and through joint ventures worldwide (as of June 30, 2024). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
KPS Mid-Cap focuses on investments in the lower end of the middle market that require up to $200 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for nearly three decades. KPS Mid-Cap leverages and benefits from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience. The KPS Mid-Cap investment team is managed by Partners Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.
