Siemens Healthineers’s €4.2 billion initial public offering on the Frankfurt Stock Exchange

German engineering group Siemens (SIEGn.DE) set the price range for the planned initial public offering (IPO) of its medical imaging and diagnostics business, valuing the division at a smaller than expected €31 billion.

Including overallotments of 19,565,217 shares, the IPO had a total offering size of €4.2 billion (approximately $5.2 billion), making it the second largest IPO in Germany since 2001. Following the offering, assuming full exercise of the greenshoe option, Siemens AG will continue to hold an 85 percent stake in Siemens Healthineers.

The Siemens Healthineers group was formed in a series of transactions that separated the Siemens healthcare business from the other activities of the Siemens Group. Siemens Healthineers is a global provider of healthcare solutions and services across the full healthcare spectrum (imaging, diagnostics and advanced therapies) with sales in more than 180 countries. In 2017, Siemens Healthineers had combined revenues of around €13.8 billion and a combined EBITDA of €2.9 billion.

Sullivan & Cromwell acted as German and U.S. counsel to the underwriters, led by Deutsche Bank, Goldman Sachs and J.P. Morgan, with respect to the trading of shares of Siemens Healthineers on the Frankfurt Stock Exchange, following an initial public offering of 130,434,783 existing shares from the holding of Siemens Healthineer’s parent company, Siemens AG.

The Sullivan & Cromwell team on the transaction was led by Carsten Berrar (picture) and Krystian Czerniecki, along with Clemens Rechberger, Lars Rueve, Daniel Kornack and Lisa Berger. Slki Hong advised on U.S. tax matters.

 

Involved fees earner: Carsten Berrar – Sullivan & Cromwell; Krystian Czerniecki – Sullivan & Cromwell; Clemens Rechberger – Sullivan & Cromwell; Lars Rueve – Sullivan & Cromwell; Daniel Kornack – Sullivan & Cromwell; Slki Hong – Sullivan & Cromwell;

Law Firms: Sullivan & Cromwell;

Clients: Deutsche Bank; Goldman Sachs International; JP Morgan;