Knorr-Bremse has finalized the sale of its subsidiary, Kiepe Electric, to investment firm Heramba, while retaining a 15% stake in the company. The transaction, completed in late January, follows Knorr-Bremse's previously stated intention to divest Kiepe Electric, as announced in August 2023.
The sale encompasses all aspects of Kiepe Electric's operations, including its entire workforce, although the specific financial terms of the deal have not been disclosed. Kiepe Electric, headquartered in Düsseldorf, specializes in electrifying urban road and rail transport, offering a range of products and solutions for power electronics, electric drives, and vehicle control systems.
Dr. Nicolas Lange, Member of the Executive Board of Knorr-Bremse AG, commented on the rationale behind the sale, stating, “With its focus on electric vehicle equipment, Kiepe Electric has proved to be a dynamic, efficient business unit.” He further explained, “Overall, however, only a small amount of synergy could be achieved between Kiepe Electric and the Rail Vehicle Systems division, which is why we made the decision to separate from Kiepe Electric.”
Frank Markus Weber, CFO of Knorr-Bremse AG, emphasized the significance of the sale in aligning the company's strategic objectives, stating, “The ongoing review of our business portfolio's performance and its fit with our strategy is going successfully.” He added, “With the sale of Kiepe Electric, we have now reached another important milestone, and Kiepe Electric will be able to focus clearly on its own strengths and business.”
Heramba, a specialist investment company focusing on solutions for the decarbonization of commercial transport, sees the acquisition as an opportunity to create a leading entity in sustainable urban transport. The transaction follows Heramba's merger with SPAC company Project Energy Reimagined Acquisition Corp (PERAC) in October 2023, paving the way for its listing on the US stock exchange.
The sale underscores Knorr-Bremse's strategic focus on core competencies, particularly in braking systems and safety-critical systems for rail and commercial vehicles, while enabling Kiepe Electric to pursue its business objectives independently.