Siemens to sell water technology unit

German engineering firm Siemens has agreed to sell parts of its water business to US-based private equity firm AEA Investors for approximately €640m.

AEA will acquire municipal and industrial services, water and wastewater treatment operations, as well as Siemens Water Technologies’ assets. Siemens will continue to focus on municipal and industrial water and wastewater treatment equipment and services under AEA.

Siemens CEO Dr Lukas Loeffler said that the company will continue building on its range of brands and advanced water and wastewater treatment technologies together with AEA to help its customers meet their water needs now and in the future.

"We look forward to a new chapter of increased entrepreneurship, flexibility and growth for Water Technologies," Loeffler added.

Siemens said it will now focus its water business on automation and drive solutions for the operation of water and sewage treatment and seawater desalination plants.

Siemens managing board member and industry sector CEO Siegfried Russwurm said that the company will focus on its water solutions business in the future, which is in line with its electro technical core competencies in automation and drive technologies.

"In AEA, we’re pleased to have found a buyer with experience in industrial investments who wants to continue to drive Water Technologies’ business and cultivate existing customer relationships," Russwurm added.

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Image: Siemens’ headquarters in Munich. Photo: courtesy of Rufus46.