On October 29, 2020, The Carlyle Group announced that it has agreed to acquire Flender GmbH, a leading company in the mechanical drive and electrical drive industries, from Siemens AG for 2 billion euros. The transaction still needs to be approved by relevant regulatory authorities, and more details about the transaction were not disclosed.
Flender GmbH, headquartered in Bocholt, Germany, is the world's leading transmission technology company with a wide range of products and services, including gearboxes, couplings and generators suitable for various industries. In addition, with the increasing importance of wind energy in renewable energy, the company's performance in the field of wind energy is particularly outstanding. Flanders employs approximately 8,600 people worldwide and operates in 35 countries including Asia. Its sales in fiscal year 2020 are expected to be 2.2 billion euros.
With its rich experience in the industrial field, The Carlyle Group will invest heavily in Flender GmbH's technology and service platform to give full play to its potential as an independent company, achieve operational optimization and strategic improvement, and promote accelerated growth.
The equity investment will be carried out by affiliated companies of The Carlyle Group European Fund V (CEPV) and The Carlyle Group Asian Fund V (CAPV). The fifth fund of The Carlyle Group European Fund is 6.4 billion euros, investing in various industries in Europe; the fifth fund of The Carlyle Group Asian Fund is 6.6 billion US dollars, investing in various industries in the Asia-Pacific region.
Mr. Andreas Evertz, CEO of Flender GmbH, said: "We are very pleased to cooperate with The Carlyle Group. The Carlyle Group has long been committed to promoting the growth of global industrial enterprises and supporting the company's transformation into an independent entity. It is unique and experienced. We look forward to working with The Carlyle Group. Carlyle Group works closely to continue to provide high-quality services to customers around the world and jointly pursue our development goals."
Mr. Gregor Bhm, co-head and managing director of The Carlyle Group’s European Fund, said: “As a global leader in gear and transmission technology, Flender GmbH has a unique portfolio of products and services and unique conditions for further growth. With deep industry accumulation and distribution We can help Flender GmbH achieve continuous growth and innovation through the successful experience of the demolition transaction. The Carlyle Group looks forward to working with the company’s management team and employees to create greater brilliance for the company.
Ms. Feng Junyuan, Managing Director of The Carlyle Group Asia Fund said: “China will continue to play an important role in the global transition to renewable energy and has committed to achieving carbon neutrality by 2060. We are very optimistic about wind energy in China and Asia. Development contains huge growth opportunities, and it is estimated that a large part of the global new installed capacity will come from China. We will make full use of The Carlyle Group's investment experience in the Asia Pacific region to help Flender GmbH further consolidate its market position in the wind power and industrial gear fields To support the long-term development of the wind power industry in Asia and the world."
Since its establishment, The Carlyle Group has been focusing on global industrial investment, with a total investment of more than 20 billion U.S. dollars, and currently manages one of the world's largest industrial investment portfolios. The core strategy of The Carlyle Group's investment in the industrial sector is to build a leading brand in independent market segments through large and complex spin-off transactions. Successful cases include Nouryon, Atotech, Axalta and Senqcia.