Siemens Healthineers Said in Early Talks on Diagnostics Sale

Original from: Bloomberg

Siemens Healthineers AG has been holding exploratory discussions with some of the largest private equity firms about a potential sale of its diagnostics segment, according to people with knowledge of the matter said.

Blackstone Inc., CVC Capital Partners Plc and KKR & Co. are among those who have held early talks, said the people, who asked not to be identified as the information is private. Montagu has also expressed interest in the past, some of the people said.

The diagnostics unit could be valued at more than €6 billion ($7 billion) in a transaction, according to some of the people. Advisers could be appointed at a later stage if discussions proceed into formal stages, the people said.

There’s no certainty the preliminary deliberations will lead to a transaction and Siemens Healthineers could decide to keep the business, the people said. Representatives for Siemens Healthineers, Blackstone, CVC, KKR and Montagu declined to comment.

Based in Erlangen, Bavaria, Siemens Healthineers started a review of the diagnostics business more than two years ago. The in-vitro diagnostics operations test samples of blood and tissue to identify diseases and infections. The imaging division and the Varian unit that focuses on cancer-care technologies wouldn’t be part of any sale.

Shares of Siemens Healthineers gained as much as 3.6% on Wednesday, the biggest intraday advance since May 12, after the Bloomberg News report. The stock has still fallen about 6% this year, giving the company a market value of around €54 billion. The company’s largest shareholder is German engineering group Siemens AG, which has a stake of roughly 71%, according to data compiled by Bloomberg.

Siemens Healthineers will hold its capital markets day on Nov. 17 when the company usually outlines its business strategy and targets. Siemens in February pared its stake in Siemens Healthineers in a €1.4 billion share placement. The group has been reviewing its remaining Healthineers holding and plans to update investors on its strategy in December.

Source: Siemens Healthineers Said in Early Talks on Diagnostics Sale