The Carlyle Group to acquire Flender from Siemens AG for €2 billion
Munich, Germany, 29 October 2020 - Global investment firm The Carlyle Group (NASDAQ: CG) today announced that it has agreed to acquire Flender GmbH, a market leader in mechanical and electrical drive technology, from Siemens AG for €2 billion. Further details of the transaction were not disclosed. The transaction is subject to regulatory approvals.
Headquartered in Bocholt, Germany, and active across 35 countries including Asia, Flender is a global leader in drive technology employing approximately 8,600 people and had sales of c.€2.2 billion in FY20. The company’s comprehensive product and service portfolio includes gearboxes, couplings, and generators for a wide variety of industries. The business is particularly strong in Wind, a sector benefitting from secular tailwinds given its increasing importance in the energy mix.
Leveraging its significant experience in the Industrials sector, The Carlyle Group will support Flender to fully achieve its potential as a standalone company, driving accelerated growth through operational and strategic improvements, including investment into its technology and service platform.
Equity for the investment will be provided by Carlyle Europe Partners (CEP) V, a €6.4 billion fund investing in European opportunities across a range of sectors and industries, and an affiliate of Carlyle Asia Partners (CAP) V, a US$6.6 billion fund focused on buyout and strategic investments across a range of sectors in the Asia Pacific region.
Andreas Evertz, CEO of Flender, said: “We are delighted to be partnering with Carlyle, a firm with a long history in growing Industrials businesses globally and supporting companies as they transition to become standalone entities. We look forward to working closely together as we continue to serve our customers around the world while also pursuing our growth ambitions.”
Gregor Böhm, Managing Director and Co-Head of Carlyle Europe Buyout, said: “As a global leader in gear and drive technology with a unique product and service portfolio, Flender is ideally positioned for further growth. Our significant Industrials expertise, as well as extensive experience with carve-out transactions, positions Carlyle well to support Flender with its continued growth and innovation. We look forward to partnering with the company’s management team and employees to further build on the company’s success.”
Janine Feng, Managing Director of Carlyle Asia Partners, said: “China is expected to remain a major driver of the global renewable energy transition and has pledged to become carbon neutral by 2060. We are excited by the significant growth opportunity of wind energy development in China and across Asia, where a significant proportion of the global capacity additions is expected to originate. We will draw upon our deep local presence to help Flender further solidify its competitive position in wind and industrial gears in the region, and to support the long-term development of wind power in Asia and globally.”
The investment in Flender builds on Carlyle’s long-term global focus on Industrials, a sector in which the firm has invested over $20 billion since inception. Today, Carlyle manages one of the largest industrial portfolios in the world. Executing large and complex carve-out transactions to build standalone market leaders is a core component of this strategy, with examples being Nouryon, Atotech, Axalta and Senqcia.
About The Carlyle Group:
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $230 billion of assets under management as of September 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,800 people in 30 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.