The deal was closed at the end of May. The Combined Cycle Division, which was not taken over by Andritz, continues to remain with Siemens. Although no purchase price details were disclosed, experts estimate the price at roughly € 200 million.
Background: The condition imposed on Siemens Austria by the EU when purchasing VA TECH was to sell its hydropower business. Andritz AG finally emerged as the most promising candidate among several potential buyers in February. Wolfgang Leitner, CEO of Andritz, says the purchase will make his company one of the world-leading suppliers of water turbines.
The hydropower division, accounting for a quarter of the company’s total turnover, will at one go become the second-largest business for the Graz-based engineering company. Siemens has based its sales decision on the "convincing site concept of Weiz". A job guarantee for workers granted by Siemens until end of 2006 has been adopted by Andritz.
The takeover of VA TECH Hydro has helped Andritz to grow by about one third. The company took over a sales volume of € 620 million and 3,000 employees. The operating profit of the taken-over Hydro shares in 2004 is estimated at € 24 million.
(Source: aqua press Int. 2/2006)