Siemens Energy advances separation of industrial division

Siemens Energy is advancing the legal and operational separation of its Transformation of Industry division. The unit, which employs approximately 17,000 people and generates $6.2 billion in annual revenue, is being prepared as a standalone entity. This move follows pressure from institutional investors regarding financial transparency and the division's performance relative to other power businesses.

Goldman Sachs is advising on the transaction. The potential carve-out has attracted interest from several private equity firms, including EQT, Bain Capital, Brookfield, and KKR. The division specializes in efficiency and emissions equipment, including industrial steam turbines, compressors, and electrolysers, with service work accounting for roughly half of its turnover.