BERLIN, Oct 12 (Reuters) – Private equity firm Triton said on Thursday that it was acquiring Siemens Energy’s (ENR1n.DE) high-voltage component business Trench in a deal that is expected to close in the first half of 2024.

The sale, confirmed in principle a day earlier, is sharpening Siemens Energy’s portfolio at a time when it is struggling with major product quality issues at its wind turbine division Siemens Gamesa.

Both parties said the transaction value would not be disclosed, but sources familiar with the matter have said the price is a mid triple-digit million euro sum.

“We are positioning Siemens Energy for the future, which means sharpening our portfolio, simplifying our business and rationalizing how and where we can invest in innovation,” Siemens Energy board member Tim Holt said.

“The Trench business is a small medium enterprise with ambitious growth plans which will be best realized under different ownership.”

Trench, which makes bushings, transformers and coil products, employs around 2,400 people, less than 3% of Siemens Energy’s total workforce. The division operates nine factories globally and has locations across Europe including Germany, Austria, France, Bulgaria and Italy with additional operational footprint in China and Canada.

Siemens Energy expects a net loss of 4.5 billion euros ($4.78 billion) in the current financial year, mainly due to the problems at wind power division Siemens Gamesa.

($1 = 0.9416 euros)

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