Colfax Corporation, a leading global manufacturer of gas- and fluid-handling and fabrication technology products and services, has entered into an agreement to acquire Siemens Turbomachinery Equipment GmbH (STE) from Siemens AG.
The divestment scope includes Siemens’ business in Frankenthal, Germany; Helsingør, Denmark; Mornago, Italy; and Springfield, Missouri, USA. It includes its entire portfolio of single-stage, wastewater and environmental compressors; pre-designed steam turbines up to 12 MW (models SST-040, SST-050, SST-060, SST-110, and SST-111); and the related service business.
“The market environment for power generation and oil and gas is extremely difficult as a result of the presently low oil prices and the consequent low level of investment by oil and gas companies,” Siemens said. “The cost situation is important to make our business much more competitive. Against this background, it was necessary to sell businesses representing excess capacity or focused in non-O&G segments.”
The acquisition will be integrated into Colfax’s Howden business platform, broadening Howden’s range of compression solutions and expanding its product offering into small steam turbines. The move also diversifies Howden’s served end-markets and increases its presence in some applications.
“I am delighted to welcome the Siemens Turbomachinery Equipment team to Colfax,” said Matt Trerotola, President and Chief Executive Officer of Colfax. “STE’s brands reach as far back as 1899, and the business has thousands of satisfied customers and installations around the world. We are excited by the opportunities created by combining STE with Howden’s global footprint, continuous improvement culture, and aftermarket capabilities. The acquisition expands our end markets and product portfolio in environmental and industrial markets worldwide. We look forward to continuing to innovate and grow together.”