Carlyle acquires Flender from Siemens in €2bn deal

Siemens initially attempted to sell Flender in 2018, seeking an EV of €1bn, but failed to find a suitable buyer, according to Unquote sister publication Mergermarket.

Siemens said in a statement issued in May 2020 that it planned to integrate its wind energy generation unit into Flender and to list the company via a spin-out. Mergermarket reported in July 2020 that the company was likely to draw interest from strategic investors and sponsors, citing a number of bankers.

Mergermarket reported in October 2020 that CVC had dropped out of the process to acquire Flender, having previously held the company from 2000 to 2005. Brookfield, Triton and Carlyle had submitted initial offers for the business ahead of a deadline on 19 October.

The business was marketed on EBITDA of around €200-220m, according to Mergermarket.

Carlyle is investing via Carlyle Europe Partners V, which held a final close in October 2019 on €6.4bn. Flender will be the vehicle's third platform investment, according to Unquote Data.

Carlyle said in a statement that it intends to support Flender in its establishment as an independent company, and will invest in operational and strategic improvements.

Previous funding
CVC acquired a 95% stake in Flender from parent company Babcock Borsig in August 2000. Siemens acquired a majority stake in Flender from CVC for €1.2bn in 2005 and acquired the remaining minority stake in 2008.

Company
Flender produces and develops drive technology components such as gear units and couplings. The company also provides services including repairs, spare parts provision, maintenance and diagnostics. Its components are used in industries including wind power, shipping, oil and gas, mining, and food and beverage production. The business reports revenues of €2.2bn and employs 8,600 people. Based in Bocholt, it has operations in 35 countries.

People
Carlyle Europe – Gregor Böhm (co-head of Carlyle Europe Buyout).
Flender – Andreas Evertz (CEO).

Advisers
Vendor – Bank of America (corporate finance); Citi (corporate finance).

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