Munich, Germany—Siemens reports that it's expanding its industrial drive business by acquiring Flender Holding GmbH from London-based Citigroup Venture Capital (CVC) Equity Partners for 1.2 billion euros, pending approval by antitrust authorities. Flender and its activities will become the 11th division of Siemens' Automation and Drives Group (A&D). Siemens says the acquisition will expand its drive technologies with gear systems, and enhance the benefits delivered by its drive solutions.
Flender has 6,700 employees at 80 locations worldwide, and posted sales of € 1billion in its 2003-04 fiscal year. It supplies mechanical and electrical drive equipment used in mechanical engineering, basic materials processing, transport and conveying systems, and also in power generation. Flender concentrates on gear technology, ranging from couplings and industrial gear units to gear motors and large gears for ships and wind power stations. Flender adds that its regional activities are mainly concentrated in Germany, France, China, India, and the U.S.
Because gears are an integral component of many applications and systems in production and logistics, Siemens adds that buying Flender expands its automation know how in complete drive systems. Siemens says this will allow it to optimize its customers' installations over the whole drive train. For example, integrated development and engineering will lead to smaller, lighter, long-living and high-performing drive systems, contributing to the productivity and competitiveness of industrial customers in all industries.