Sept. 26, 2002 — Siemens’ sale of several business activities to private equity house Kohlberg Kravis Roberts & Co. L.P. (KKR), which was agreed on July 25th, 2002, has now closed.
As planned, KKR has taken over businesses that belonged to the former Atecs Mannesmann Group: Mannesmann Plastics Machinery, the gas spring producer Stabilus, Demag Cranes & Components and the harbor crane unit Gottwald.
As part of the package, Siemens is also selling the metering business of its Power Transmission and Distribution Group, the Ceramics Division of its Power Generation Group, and Network Systems, a regional service business belonging to its Information and Communication Networks Group.
The transaction comprises businesses with a total sales volume of some €3.5 billion and around 22,800 employees. The purchase price totals €1.69 billion. As foreseen, the business activities were placed in a holding company, called Demag Holding s.a.r.l (Luxemburg). KKR holds an 81% and Siemens a 19% stake in the holding company.
Taking into account this stake, as well as a vendor note of €215 million and net debt assumed in the amount of €365 million, net cash proceeds for Siemens will amount to about €1.0 billion.