Goldman to advise Siemens on water unit sale
Published on by Water Network Research, Official research team of The Water Network in Business
Siemens has picked Goldman Sachs to advise on the sale of its Water Technologies unit, part of the engineering conglomerate's efforts to streamline operations and stay competitive in a weak global economy, two people familiar with the matter said. Siemens, Germany's second-most valuable company which makes products ranging from fast trains and gas turbines to hearing aids, in November announced it plans to sell the water unit with annual sales of about 1 billion euros ($1.35 billion).
Siemens built up its water technology operations through a flurry of acquisitions over the last decade. Among others, it bought the water systems and services division of US Filter from Veolia Environnement for $1 billion in 2004.
Since much of Siemens's water business is focused on North America, industry sources expect U.S.-based peers Xylem and Pentair to take a look at the asset.
"Asian companies are also likely to throw their hats into the ring," one of the people said. The region was experiencing rapid economic growth, climate change impacts, rising populations and stricter energy and water regulations and is therefore expected to see heavy investment in water treatment equipment in coming years, he said.
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