Siemens to sell water technologies unit
Sources close to Siemens AG revealed private equity firms have zeroed in on the company's water technologies business unit. The sources said Siemens is looking to raise up to US$700 million in its second round of bidding for the business unit in the next few days.
According to the sources, among the private equity companies are interested in acquiring the water technologies business unit are Centerbridge Partners LP, Golden Gate Capital LLC, and Platinum Equity LLC.
Siemens previously reported the unit made approximately US$1.3 billion in net sales in 2012. Analysts said that private equity companies estimate the unit's earnings to be between US$70 million and US$80 million before tax, depreciation, amortization, and interest.
The Siemens water technologies business unit offers products for water disinfection systems, conventional water treatment, and emergency water supply among others.
Siemens, Goldman Sachs, Siemens' financial adviser on the sale, and the private equity firms involved were not available to comment.