Siemens Explores Sale Of Microbiology Unit : Report

(RTTNews) - German conglomerate Siemens AG (SI) is exploring a sale of its microbiology unit as the company reviews its business strategy, Bloomberg reported citing people familiar with the matter.

The report quoted one of the people as saying that the company has hired a bank to seek potential buyers for the business, which could fetch between $300 million and $600 million.

The unit, which is part of the larger diagnostics division with 3.9 billion euros or $5.4 billion in revenue, supplies equipment for bacterial identification and antibiotic susceptibility testing.

BioMerieux, a French maker of tests for HIV and hepatitis, is among companies that will take a look at the business, the report said citing two of the people.

Investment banks have also been gauging private-equity interest in the larger diagnostics division even though Siemens has not decided to sell the business or hired a bank to explore a disposal, the report said quoting people familiar with the matter. Banks have pitched the business to buyout firms including Blackstone Group LP (BX) and Carlyle Group LP.

The report indicated that the unsolicited marketing of the diagnostics business, as well as profit margins that trail the health-care business overall, has led to speculation it could be sold.