Sale of a Third Siemens Healthcare Unit: Will The Company Stay in IVD?

Sale of a Third Siemens Healthcare Unit:  Will The Company Stay in IVD?

If the recent sale of its audiology unit was the only such move made this year, there would be no question about the place of Siemens in the healthcare market. But this recent sale is one of three. Siemens is the third largest company in IVD, according to Kalorama Information’s biennial survey of the IVD market, with 5.5 billion in IVD revenues last year. In July Siemens agreed to sell its clinical microbiology business to Beckman Coulter, a subsidiary of Danaher Corp. Then In August, Cerner bought health their IT business for $1.3 billion in cash. We don’t know what the firm plans, but the change in the IVD market from the loss of the third-largest player would be dramatic.

Siemens announced the sale of its hearing aid business for $2.68 billion to private equity firm EQT Partners and Santo Holding. EQT will hold a majority stake, with Santo holding a smaller share. Siemens will keep a preferred equity investment in the unit. The unit earned 860.8 million) 2014, and EBITA of $180.1 million.

For its part, Siemens is saying Healthcare will remain part of Siemens. CEO Joe Kaeser said during a recent earnings call that the healthcare unit will remain and operate as a "company within the company." 

The firms priority since a recent managment change, has been in energy. In September Siemens announced its plans to purchase American oil equipment company Dresser-Rand Group for $6.4 billion, pointing to where the company’s long-term interests lie.