Siemens to continue its exit from the water sector
Published July 5th, 2018
German conglomerate Siemens is considering offloading its water solutions business, continuing its exit from the sector – which began with the sale of Evoqua in 2014.
The business which is up for sale is focused on treatment solutions and services for a variety of upstream and downstream oil and gas applications, serving both the onshore and offshore markets. These include primary, secondary and tertiary treatment solutions for produced water, wet air oxidation and oil/water separation for downstream markets, and biological treatment applications, including proprietary membrane bioreactor (MBR) systems marketed under the Petro and PACT brands.
The water solutions unit is understood to be in the process of rebuilding its revenue base after sales dropped by a third last year (to around €40 million). Profitability is likely to be the biggest concern for any prospective buyer, however, as the business does not expect to turn EBITDA-positive until 2019.
* Note that Siemens intends to retain its automation and control business in the water sector, as well as its water meter business.