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Carlyle to pay US$2 billion for drive tech firm Flender
Investor sees opportunity in wind energy development in China, Asia
30 Oct 2020 | The Asset

Global investment firm Carlyle Group has agreed to acquire Flender, a firm specializing in mechanical and electrical drive technology, from Siemens for 2 billion euros.

Germany-based Flender, which is active across 35 countries, including many in Asia, had sales of 2.2 billion euros in FY20. The company’s product and service portfolio includes gearboxes, couplings, and generators for a wide variety of industries. The business is particularly strong in wind, a sector benefitting from secular tailwinds given its increasing importance in the energy mix.

Carlyle will support Flender as a standalone company, driving accelerated growth through operational and strategic improvements, including investment into its technology and service platform.

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

“China is expected to remain a major driver of the global renewable energy transition and has pledged to become carbon neutral by 2060,” says Janine Feng, managing director of Carlyle Asia Partners. “We are excited by the significant growth opportunity of wind energy development in China and across Asia, where a significant proportion of the global capacity additions is expected to originate.” 

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