IPO planned for Siemens medical devices
US HQ for $15B business is Malvern
Siemens, the German electrical-equipment maker, plans to spin off its Siemens Healthineers (formerly Siemens Health Solutions) business, including its 1,000-worker U.S. headquarters in Malvern, into a new, publicly-traded company.
Healthineers, which makes ultrasound, xray, lab and office testing and other medical devices, accounts for almost 20 percent of Siemens' $85 billion in yearly sales -- and 40 percent of its profits."Our products are used in 8 out of 10 U.S. hospitals," says spokeswoman Kimberley Nissen.
Independence will give Healthineers "focus and flexibility in pursuing its growth strategy," Siemens chief executive Joe Kaeser said in a statement Tuesday. No date has been set for the public sale.
Healthineers, with 46,000 employees worldwide, will grow faster free of Siemens ownership as it boosts sales to the fast-consolidating, digital-based and increasingly automated healthcare industry, Healthineers boss Bernd Montag said in a statement.
Siemens sold another Malvern-based business, its hospital data and patients records unit, to Kansas City-based Cerner Corp. for $1.3 billion in 2014. That group employed around 5,000, around half of them in Malvern. Siemens had purchased the unit, founded by R. James McAleer as Shared Medical Systems, for $2 billion in 2000.
Earlier this week Siemens said it would invest $130 million in Exton-based construction software maker Bentley Systems, which has been considering its own public stock offering.