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Siemens is buying ebm-papst’s drive technology business

21 March, 2024

Siemens is buying the industrial drive technology (IDT) business of the German fans and mechatronic systems manufacturer, ebm-papst, for an undisclosed sum. The business, which employs around 650 people in Germany and Romania, produces intelligent mechatronic systems in the protective ELV (extra-low voltage range) as well as motion control systems used in AGVs and driverless transport vehicles.

Ebm-papst’s products are also used in mobile robots as well as in the automation of auxiliary processes, such as the retooling of production machines. Siemens says they they are an important lever for greater flexibility and productivity. It expects high growth in this sector.

Siemens adds that the planned acquisition will complement its Xcelerator portfolio and strengthen its position as a leading supplier of flexible automation systems. The investment in intelligent, integrated and network-connected mechatronic systems underscores its commitment to sustainable innovation and its position as a leading supplier of systems and solutions for future-oriented, flexible production automation.

“Ebm-papst’s innovative portfolio of mechatronic drive systems and its highly qualified people are an excellent fit for Siemens,” says Siemens board member Cedrik Neike, who is also CEO of its Digital Industries business. “The acquisition will enable us to tap new business and customer potential in the rapidly growing market for intelligent, battery-powered drive solutions in intralogistics as well as mobile robot solutions.”

For its part, ebm-papst says that the sale will give IDT access to international markets through a larger global sales organisation. It now intends to focus on its core business of air and heating technologies and to accelerate its transformation in terms of sustainability and digitisation, as well as international expansion.

Ebm-papst carved out IDT as an independent division in mid-2022 to operate independently of the requirements in air and heating technology.

“Our Industrial Drive Technology division is extremely attractive and offers high development potential, especially internationally,” says ebm-papst group CEO, Dr Klaus Geißdörfer .“We also have technologically leading product solutions and highly qualified employees. However, what we have lacked in this division so far is a global sales organisation that offers us full growth and development opportunities.

ebm-pabst’s facility in Lauf an der Pegnitz, Germany
Photo copyright: Christof Wolf

“We’ll use the proceeds from the sale of the IDT business to further expand our Air Technology and Heating Technology divisions, to further strengthen our three regions – Europe, Asia and the Americas – and to invest in future fields of our product portfolio, such as digitalisation and sustainability,” Geißdörfer adds. “This will enable us to meet the long-term market demand for energy-efficient solutions, particularly in the future markets of data centres, cleanrooms and heat pumps. At the same time, we are creating excellent future prospects for our company and our employees, including those working at the locations where the IDT business was previously based.

Siemens is taking on all 650 IDT employees based in St. Georgen and Lauf an der Pegnitz in Germany, and Oradea in Romania. Drives which are currently manufactured at the Hagenmoos plant in St. Georgen, will be relocated to Oradea. In future, the St. Georgen plant will only produce fan components.

The transaction is expected to be completed by mid-2025, subject to foreign trade and merger control approvals.

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