Released May 08, 2014 | ISTANBUL
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering giant Siemens AG (NYSE:SI) (Munich, Germany) agreed to acquire Rolls-Royce Energy's (LSE:RR.L) (London, England) gas turbine and compressor business for 785 million pounds (US$1.3 billion). According to a statement from Siemens, the transaction is expected to close before the end of December 2014, subject to regulatory approvals.
In addition, as part of the transaction, Siemens will get exclusive access to future Rolls-Royce aero-turbine technology developments in the 4- to 85-MW power output range, as well as preferred access to supply and engineering services. Siemens will pay Rolls-Royce an additional $340 million for this 25-year agreement.
By acquiring Rolls-Royce's small and medium aero-derivative gas turbines, which have power outputs of up to 66 megawatts, Siemens will close a technological gap in its extensive gas turbine portfolio. Because of their efficiency and fast start-up capabilities, aero-derivative gas turbines are used for decentralized power generation; their flexibility helps meet peak electricity demands, provide emergency power reserves, and stabilize the power grid.
The acquired business, which has about 2,400 employees, delivered revenue of $1.48 billion in fiscal 2013. With an installed base of about 2,500 turbines, Rolls-Royce Energy's business has the world's second-largest fleet of aero-derivative gas turbines.
Siemens CEO Joe Kasser plans to close the gap between the company and its competitors, such as GE and Alstom. Kaeser, who took the job last year from Peter Loescher, is focusing more on electrification, automation and digitization, where he feels the company has a competitive advantage and can pursue long-term, profitable growth.
According to "Vision 2020" plan, the company is disbanding its four-sector structure (energy, industry, healthcare and infrastructure) and will instead consolidate the current 16 subdivisions into nine larger units.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
In addition, as part of the transaction, Siemens will get exclusive access to future Rolls-Royce aero-turbine technology developments in the 4- to 85-MW power output range, as well as preferred access to supply and engineering services. Siemens will pay Rolls-Royce an additional $340 million for this 25-year agreement.
By acquiring Rolls-Royce's small and medium aero-derivative gas turbines, which have power outputs of up to 66 megawatts, Siemens will close a technological gap in its extensive gas turbine portfolio. Because of their efficiency and fast start-up capabilities, aero-derivative gas turbines are used for decentralized power generation; their flexibility helps meet peak electricity demands, provide emergency power reserves, and stabilize the power grid.
The acquired business, which has about 2,400 employees, delivered revenue of $1.48 billion in fiscal 2013. With an installed base of about 2,500 turbines, Rolls-Royce Energy's business has the world's second-largest fleet of aero-derivative gas turbines.
Siemens CEO Joe Kasser plans to close the gap between the company and its competitors, such as GE and Alstom. Kaeser, who took the job last year from Peter Loescher, is focusing more on electrification, automation and digitization, where he feels the company has a competitive advantage and can pursue long-term, profitable growth.
According to "Vision 2020" plan, the company is disbanding its four-sector structure (energy, industry, healthcare and infrastructure) and will instead consolidate the current 16 subdivisions into nine larger units.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
