Carlyle Group Inks Deal to Acquire Flender From Siemens

The Carlyle Group CG has entered into an agreement with Siemens AG SIEGY to buy Flender for an enterprise value of €2 billion ($2.39 billion). Terms of the deal, which is subject to regulatory approvals,were not disclosed by the company.

Flender is a market leader in mechanical and electrical drive technology and has operations across 35 countries, including Asia. The company’s comprehensive product and service portfolio includes gearboxes, couplings and generators for a wide variety of industries.

Equity for the investment is supposed to be provided by Carlyle Europe Partners V, a €6.4 billion fund investing in European opportunities across a range of sectors and industries, and an affiliate of Carlyle Asia Partners V, a $6.6 billion fund focused on buyout and strategic investments in a range of sectors in the Asia Pacific region.

“As a global leader in gear and drive technology with a unique product and service portfolio, Flender is ideally positioned for further growth.” said Gregor Böhm, managing director and co-head of Carlyle Europe buyout.

Carlyle Group seeks to enable Flender achieve its full potential as a standalone company, driving growth through operational and strategic improvements, including investment in its technology and service platform.

The investment in Flender builds on Carlyle’s long-term global focus on Industrials, a sector in which the firm has invested more than $20 billion since inception.

The company’s shares have gained 13.4% over the past six months, underperforming its industry’s rally of 14.5%.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks in the Finance space are Waddell Reed Financial WDR and Invesco IVZ, each flaunting a Zacks Rank #1.

Waddell Reed ‘s Zacks Consensus Estimate for earnings for the current year has been upwardly revised by 15.2% in the past 30 days. Also, its share price has increased 8.8% in the past six months.

Invesco’s earnings estimates for the current year have been revised 7.6% upward over the past 30 days. Further, the company’s shares have jumped 62% in the past six months.

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