Siemens Energy's supervisory board has approved the carve-out of its Transformation of Industry division, moving the steam-turbine and hydrogen business a decisive step toward a sale that could value the unit at more than €10 billion.
The division
The Transformation of Industry (ToI) division houses steam turbines, hydrogen electrolyzers, generators and compressors. It generated €5.7 billion in revenue in the most recent reporting period and employs 17,000 people, according to Handelsblatt. Chief executive Christian Bruch told the paper the company will now prepare ToI for legal and operational independence while retaining a minority stake. A full sale to private equity is considered the most likely outcome.
The buyers
Multiple private-equity firms are evaluating bids. Handelsblatt, citing Bloomberg, names CVC Capital Partners, EQT, Bain Capital, Brookfield and KKR as parties reviewing the asset. Goldman Sachs is advising Siemens Energy on the transaction.
The rationale
The carve-out sharpens Siemens Energy's focus on power generation and transmission — its core grid and gas-turbine businesses — while giving the industrial steam and hydrogen portfolio a dedicated ownership structure. The division's €5.7 billion revenue base and installed fleet of steam turbines give it scale, but its growth profile differs from the high-voltage and gas-turbine segments that now anchor the group's strategy.
What happens next
Siemens Energy will execute the legal separation and ready the business for a sale process. The €10 billion-plus valuation implied by the reporting would represent a multiple of roughly 1.8 times revenue, in line with recent industrial carve-outs. The timeline for a binding auction has not been disclosed.
| Company | Division/Business | Revenue (€bn) | Employees | Status |
|---|---|---|---|---|
| Siemens Energy | Transformation of Industry | 5.7 | 17,000 | Carve-out approved |
| GE Vernova | Steam Power | ~6.5 | ~20,000 | Public (spun 2024) |
| Mitsubishi Heavy Industries | Power Systems | ~8.2 | ~25,000 | Integrated |
| Ansaldo Energia | Steam Turbines | ~1.1 | ~4,000 | PE-owned (CDP Equity) |
Source: Company reports, Handelsblatt, public filings