German engineering group Siemens AG (ETR:SIE) intends to divest its Sweden-based security products business and has appointed investment bank Rothschild to advise it on the process, Bloomberg reported today citing three insiders.
The move is part of the company’s plan to sell slower-growth operations that are less synergistic with its core activities in a move to bolster its profits.
The target, which employs some 350 people, offers security cameras and access card readers, among other products. Last week, Roland Busch, head of the infrastructure and cities division, said that as a stand-alone entity, the security products business did not comply with the company’s focus on security solutions that are part of its building automation solution and therefore was not viable.
Siemens, whose shareholders already backed the planned spin-off of lighting maker OSRAM Licht AG, also intends to shed its airport luggage systems, mail automation and water technology businesses. Siemens spokesman Philipp Encz refused to comment on other possible sales of units. A spokesman for Rothschild also did not wish to comment.