KPS Capital to Acquire Siemens Electric Motors, Drives Supplier

The deal values Innomotics at $3.8 billion.

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NEW YORK — KPS Capital Partners LP announced Thursday that, through a newly formed affiliate, it 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. 

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.

"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," said Michael Psaros, co-founder and co-managing partner of KPS. "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 mega-trends 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.

"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, added, "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."

"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."

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