German industrial giant Siemens said Thursday it will sell its electrical motors business Innomotics to private US equity firm KPS Capital Partners for 3.5 billion euros ($3.8 billion).
Innomotics, a subsidiary whose motors and other systems are used in a variety of industries including chemicals, oil, utilities and automotive, employs around 15,000 people.
The group said the sale was approved by its managing and supervisory boards, with the transaction expected to closed in the first half of fiscal year 2025.
"By selling Innomotics to KPS, I am pleased that we have made further significant progress in optimizing our portfolio," said Siemens chief financial officer Ralf Thomas.