By Claire Ruckin | Updated on Oct 09, 2026 at 04:20 PM
Bankers are working on debt financings of up to €7 billion ($7.9 billion) to back a potential sale of Siemens Energy AG’s steam turbines business.
Lenders are pitching debt packages in the €6 billion to €7 billion range to potential private equity buyers, according to people familiar with the matter. Siemens Energy said in August that it was planning to separate the unit, which also makes compressors.
Bloomberg News reported in late August that CVC Capital Partners, EQT AB and Bain Capital were among the large buyout firms considering bids for a majority stake in the division, which could be valued at more than €10 billion.
The debt packages being discussed comprise around €4.5 billion to €5 billion of drawn facilities such as leveraged loans and high yield bonds, said the people, asking not to be identified because the information is private. The financing is also expected to include large undrawn facilities of around €1 billion of revolving credit facility and some €1.5 billion of guarantee lines, they added.
At those levels, leverage would total around 5.0 times, based on the unit’s approximate earnings of €900 million, the people said.
Representatives of Siemens Energy, CVC, Bain Capital and EQT declined to comment.
Siemens Energy is making efforts to streamline its operations as it focuses its investments on power generation and transmission. The steam turbines unit, also called the Transformation of Industry division, makes energy equipment that mainly serves industrial customers, setting it apart from the company’s electricity-focused businesses.
Read more: Siemens Energy to Spin Off Industry Unit in Streamlining Bid
Options for the division range from “bringing in external investors to a potential capital markets transaction,” the company said in August. Siemens Energy plans to retain a “meaningful” minority stake.