By Aaron Kirchfeld Dec. 2 (Bloomberg) — Siemens AG , Europe’s biggest engineering company, is hiring UBS AG to advise on a possible sale of its hearing-aid division, three people familiar with the matter said. Siemens, based in Munich, will also consider an initial public offering of the unit, said the people, who declined to be identified because the talks are private. The Zurich-based bank may send out information on the business to potential buyers as soon as this month, one of the people said. The division, valued at 2 billion euros ($3 billion) to 3 billion euros, may draw interest from private-equity firms including KKR & Co. LP and BC Partners Ltd., two people familiar with the matter said last week. Siemens claims the No. 1 position in the global hearing aid market by units manufactured. It trails Sonova Holding AG of Switzerland and William Demant Holding A/S of Denmark by market share, according to Sonova. Siemens, Europe’s largest engineering company, has sharpened its focus on infrastructure, energy, transport and sold assets such as mobile phones. Siemens, which also makes high-speed trains, power grids and medical scanners, doesn’t disclose sales for its hearing aids. The company has been making the products for more than 100 years, and the business is based in Erlangen in southern Germany, home to some of Siemens’s largest production sites. Marc Langendorf , a Siemens spokesman, declined to comment. A spokeswoman for UBS in Frankfurt couldn’t immediately comment UBS ranks as the No. 4 adviser on takeovers announced in Europe this year, down from the second spot in 2008, according to data compiled by Bloomberg. Hermann Requardt , the chief executive officer of Siemens’s health-care division, said on Sept. 29 at a meeting with analysts and investors that the hearing aids are “a very solid business and a strong contributor.” The company reports earnings for its fiscal full year tomorrow, and Chief Executive Officer Peter Loescher will hold a press conference in Munich. To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net
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Siemens Said to Hire UBS for Possible Sale or IPO of Hearing-Aid Division
