FRANKFURT, Sept 15 (Reuters) - Siemens is
readying its logistics unit for sale in a potential roughly 500
million euro ($591 million) deal, as the German industrial
conglomerate sheds non-core businesses to focus on its
industrial operations, people close to the matter said.
The company is working with an advisor on the divestiture of
Siemens Logistics, which makes gear to unload, convey, sort and
code parcels and prepare letters for delivery, they said, adding
that an auction could launch as early as late-2021.
The airport logistics business - machines to handle baggage
and cargo - is not part of the operations up for sale, but will
be offloaded at a later stage when air traffic has rebounded
from the hit it took in the pandemic, they added.
Siemens declined to comment.
The Siemens logistics operations put up for sale have annual
core earnings of about 50 million euros and could be valued at
more than 10 times that, the sources said.
Siemens already tried to offload the unit in 2014, but at
the time failed to strike a deal with buyout group Triton and
later with U.S. investor Wilbur Ross.
The business competes with the likes of Toyota-owned
Vanderlande, Honeywell, Kion, Daifuku
and Interroll and MHS Houten, which are
expected to be targeted as possible buyers in the auction as are
private equity groups, the sources said.
Siemens Logistics, which counts DHL, UPS
and Amazon among its customers, saw strong growth in
the April-June quarter, mainly in package handling operations,
Siemens said in its third-quarter earnings release last month.
Siemens has been reshaping itself over the last few years,
listing its Healthineers and Siemens Energy
divisions and selling smaller operations like mechanical drives
A number of non-core activities dubbed portfolio companies
remain, but one other one is also currently on the market: Yunex
Traffic unit, formerly known as Intelligent Traffic
Siemens is expected to send out information memorandums on
the traffic light technology and equipment maker later this
Yunex, which is witnessing growth in the higher
single-digits, has annual core earnings of about 60 million
euros and could be valued at 12-14 times that, people close to
the matter said.
Siemens is working with Morgan Stanley on the Yunex
divestiture, they added.
Morgan Stanley declined to comment.
($1 = 0.8463 euros)
(Reporting by Arno Schuetze; Editing by Emelia