Alstom has today signed binding agreements to sell its small gas turbines business and its medium-sized gas turbines and industrial steam turbines businesses in two transactions to Siemens.
The total value of the two transactions is 1.1 billion Euros. Net cash proceeds to Alstom are expected to be approximately 950 million Euros after deduction of debt and other adjustments.
The first transaction will cover the small gas turbines business, whilst the second transaction will cover the medium-sized gas turbines and industrial steam turbines businesses.
The industrial turbines businesses being sold account for approximately 10% of Alstom’s Power sector revenues. They include the small gas turbines business (3 MW – 15 MW) based principally in the UK; Alstom’s medium-sized gas turbines business (15 MW – 50 MW) based principally in Sweden; and the industrial steam turbines (up to 100MW) business with manufacturing sites in Sweden, Germany and the Czech Republic.
In the last financial year Alstom’s industrial turbines businesses generated sales of approximately 1.25 billion Euros and employed 6,500 staff.
The transactions are subject to regulatory clearances and documentation is being submitted to the relevant merger control authorities.