Voith Accelerates Digital Transformation

Voith, Heidenheim, Germany, is accelerating its transformation under its digital agenda. This has been made possible by the company’s successful investment in KUKA AG. After a thorough and comprehensive assessment, the shareholders unanimously voted on July 1 to tender the KUKA stake of 25.1% into Midea's voluntary public take-over offer. Voith expects a liquidity inflow of approximately EUR 1.2 billion from the transaction. This means that the KUKA stake has more than doubled in value within about one and a half years.

"Our investment in KUKA has proven a major strategic success. I am convinced that Voith is one of the winners from this take-over bid," said Dr. Hubert Lienhard, CEO and president of Voith GmbH.

Prior to undertaking the investment in 2014, the company defined six areas of activity as part of its digital agenda: automation, IT security, software platforms, sensors/robotics, data analysis, and industrial software development. At the same time, it systematically searched the market for attractive opportunities in these areas. "The investment in a robot manufacturer was always envisaged as an additional element contributing to the digitalization of the Voith product portfolio," Dr. Lienhard added. 

Under the current conditions it makes business sense to sell the share in KUKA. "Disposing of this investment will free up previously tied resources and give us flexibility for investments in organic growth as well as attractive acquisitions. Consequently, the liquidity inflow will be used entirely for the accelerated digital and development transformation of our portfolio," Dr. Lienhard noted. 

Voith has made a clear commitment to play an active role in shaping the digital transformation in its markets. With its four divisions, Voith presents an extensive range of facilities, products, and services covering the energy, oil and gas, paper, raw materials, and transport and automotive markets. On this basis, Voith is able to digitalize its entire business portfolio, gain access to complementary segments, and successfully support and guide new and existing customers in their digitalization efforts. As the established technology leader with extensive domain knowledge and a large installed base in the market, Voith believes that this approach presents substantial growth potential, which it intends to utilize in the coming years.

Founded in 1867, Voith employs more than 20,000 people, generates EUR 4.3 billion in sales, operates in more than 60 countries around the world, and is one of the largest family owned companies in Europe.*