A sign with the logo of Siemens company is on display outside its office in Moscow, Russia, May 12, 2022. REUTERS/Evgenia Novozhenina/File Photo
MUNICH, Germany (Reuters) - Siemens plans to acquire ebm-papst's industrial drive technology division as the German conglomerate seeks to expand it factory automation business, both firms said on Thursday.
Germany-based ebm-papst, which makes electric motors and high-tech fans, wants to concentrate on air and heating tech and had therefore put the division with 650 employees up for sale.
"It fits perfectly into the product portfolio at Siemens," ebm-papst Chief Executive Klaus Geissdoerfer told Reuters. "We are occupying a niche where Siemens has a gap," he added.
What ebm-papst lacked is a global sales structure, he said. "Siemens has strengths exactly where we have weaknesses," he said.
The two partners have agreed not to disclose the purchase price. The transaction is expected to close by mid-2025.
Industrial drive technology accounts for less than 10% of ebm-papst's consolidated turnover of 2.54 billion euros ($2.77 billion) and is profitable, according to Geissdoerfer.
"The acquisition will enable us to tap new business and customer potential in the rapidly growing market for intelligent, battery-powered drive solutions in intralogistics as well as mobile robot solutions," said Siemens' Cedrik Neike, the executive board member responsible for digital industries.
($1 = 0.9181 euros)
(Reporting by Alexander Huebner, Writing by Miranda Murray, Editing by Madeline Chambers)
