Siemens Energy AG is exploring a sale of a high-voltage components unit as the German gas turbine and grid technology maker focuses on core businesses, people with knowledge of the matter said.
(Bloomberg) — Siemens Energy AG is exploring a sale of a high-voltage components unit as the German gas turbine and grid technology maker focuses on core businesses, people with knowledge of the matter said.
Munich-based Siemens Energy is working with Deutsche Bank AG on the sale process for Trench Electric, which makes bushings, instrument transformers and coil products, according to the people. Non-binding bids are due in the coming weeks, they said, asking not to be identified because discussions are private.Â
Siemens acquired Trench from buyout firm CVC Capital Partners in 2004 for €285 million ($315 million). Trench and partner firm HSP Group’s 3,000 employees and 10 factories engineer and design specialized high voltage electrical products for utility and industrial markets, according to their website.
Siemens Energy is analyzing how to improve the long-term profitability and competitiveness of its bushings, instrument transformers and coils business, according to a spokesperson. The next step is a carveout of the unit, though decisions on further measures haven’t been made and Siemens Energy is examining all options, the spokesperson said.
A representative for Deutsche Bank declined to comment.
Siemens Energy Chief Executive Officer Christian Bruch is trying to return the company to profitability after issues at its struggling Spanish wind turbine business pushed it into the red. The company, which was spun off of engineering giant Siemens AG in 2020, recently moved to fully control Gamesa to finally make headway on fixing protracted problems.
–With assistance from Wilfried Eckl-Dorna.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.