SIEGY - Siemens to spin out motors large-drives businesses as new subsidiary

Siemens ( OTCPK:SIEGY ) said Wednesday it will set up a new company called Innomotics for its motors and large-drives businesses , as it seeks to meet growing demand for more efficient electrification and energy consumption in industry and society.

The new company will combine Siemens' ( OTCPK:SIEGY ) activities in the areas of low- to high-voltage motors, geared motors, medium-voltage converters and motor spindles, which were previously assigned to the company's Large Drives Applications and Digital Industries units as well as to subsidiaries Sykatec and Weiss Spindeltechnologie.

Innomotics will be based in Nuremberg, Germany, have 14K employees worldwide, and €3B (~$3.17B) in annual revenues; it will operate as a separate but wholly-owned subsidiary from July 1, with the global carve-out to be largely completed by October 1.

The former head of Siemens' ( OTCPK:SIEGY ) logistics division, Michael Reichle, was named as CEO of the new company.

Siemens ( OTCPK:SIEGY ) is a "quality industrial giant with solid prospects," LD Investments writes in an analysis published on Seeking Alpha .

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