Siemens receives bids to buy its postal automation, baggage-handling business
12 Jul 2013
Siemens has received initial bids for its postal automation and baggage-handling division, which may fetch the German conglomerate around $390 million.
German private equity firm Triton and US investment groups Gores and Platinum are among the bidders, Reuters yesterday reported, citing two sources familiar with the transaction.
In November 2012, Munich-based Siemens said that it plans to sell its baggage handling, postal and parcel sorting business since these units have very limited synergies with other Siemens business due to the high mechanical content and focus on system integration.
While announcing plans to hive-off the business, Joerg Ernst, CEO of Siemens' Logistics and Airport Solutions Unit, had said, "Whilst favourable market conditions, innovative strength and good profit results of Siemens' logistics activities, we are convinced, that a different ownership structure taps this business's full potential."
The Siemens logistics business has around 3,600 employees and revenues of approximately €900 million.
The baggage handling, postal and parcel sorting activities are bundled in the business unit Logistics and Airport Solutions with its headquarters in Constance.
The core business comprises a comprehensive portfolio in the areas of mail and parcel logistics and automation, airport logistics with baggage handling, air cargo handling and IT solutions as well as the overall customer services that supports customers in their daily operations.
The business includes systems and information technology solutions like software modules, material flow optimization, supply chain management, e-business, warehouse and cargo management systems.