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.
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.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Waddell Reed Financial, Inc. (WDR): Free Stock Analysis Report
Invesco Ltd. (IVZ): Free Stock Analysis Report
The Carlyle Group L.P. (CG): Free Stock Analysis Report
Siemens AG (SIEGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.