Siemens to Acquire Power Generation Business of Westinghouse Electric for $1.53 Billion

Siemens, the global electrical and electronics firm, confirmed on Nov. 14 the signing of a binding agreement for the purchase of Westinghouse Electric Corporation's Power Generation Business Unit for $1.53 billion.

Pending government approval in the United States and Europe, the agreement will include only the Power Generation Business Unit of Westinghouse, which had worldwide revenues of $2.2 billion last year. Not included are the nuclear Energy Systems Business Unit of Westinghouse, and the Government Services Unit, which handles nuclear material for the military and U.S. Department of Energy. What it does include is the original core of the company founded by George Westinghouse in 1886.

"Siemens and Westinghouse are two of the most respected names in electrical engineering," said Albert Hoser, president and CEO of New York-based Siemens Corp., the holding company for the parent firm's U.S. operations. "This combination of resources will most certainly strengthen the technological offerings and service capabilities that we will be able to bring to customers around the world."

The Power Generation Business Unit of Westinghouse designs, manufactures and services steam turbine-generators for power plants; combustion turbine generators for natural gas and oil-fired power plants; and constructs turnkey power plants worldwide. In addition to serving the electric utility industry, the business unit supplies, services and operates power plants for independent power producers and supplies power generation equipment and services to other non-utility customers, such as large industrial facilities.

Based in Orlando, the Power Generation Business Unit employs 8,000 people in Alabama, Florida, Pennsylvania, North Carolina, Texas and Canada. The unit will become part of the Power Generation Group of Siemens, which had sales of DM 9.5 billion in fiscal year 1997 (ending Sept. 30), including DM 5.4 billion from its fossil power generation business.

The Power Generation Group of Siemens employs 20,400 worldwide, including approximately 1,600 workers in the U.S. at Siemens Power Corp. facilities in Milwaukee, Wis., and Richland, Wash. Siemens AG, which celebrated its 15th anniversary on Oct. 12 of this year, recently reported that worldwide sales for fiscal year 1997 had topped DM 100 billion.