| NEW YORK/FRANKFURT
NEW YORK/FRANKFURT Aug 6 Siemens AG
is hoping to fetch as much as $700 million in the auction of its
water technologies unit and is seeking second-round bids by the
middle of August, several people familiar with the matter said
Platinum Equity LLC, Centerbridge Partners LP and Golden
Gate Capital LLC are among the private equity firms preparing to
submit offers, the sources said.
The unit generated $1.3 billion in revenue in 2012, and most
private equity firms estimate its earnings before interest, tax,
depreciation and amortization to be between $70 million and $80
million, the sources added.
The sources asked not to be identified because details of
the auction are confidential.
Siemens and its financial adviser on the sale, Goldman Sachs
Group Inc, declined to comment. Platinum and Golden Gate
declined to comment, while a spokesman for Centerbridge did not
respond to a request for comment.
The Siemens water technologies unit offers products ranging
from conventional water treatment to emergency water supply and
water disinfection systems.
Siemens, which ranks as Germany's second-most-valuable
company and which makes products ranging from trains to hearing
aids, announced last November its intention to divest the water
technologies business in a bid to focus on its most profitable
The industrial conglomerate said at the time that the bulk
of the water technologies unit operates in a highly fragmented
market, serving municipal and industrial clients, and so has
little in common with Siemens' global sales setup.
Siemens built up the unit through a flurry of acquisitions
over the last decade, including buying the water systems and
services division of U.S. Filter from Veolia Environnement
for $1 billion in 2004.