With an eye to focusing on other aspects of materials handling, Siemens has sold its Demag Cranes and Components division to the investment group Kohlberg Kravis Roberts & Co. (KKR). The deal was scheduled for completion at the end of last month.

The new company will be known as Demag S.A.R.L. In addition to the cranes business, the new company, which is a joint venture of KKR (81% interest) and Siemens (19%), includes seven divisions ranging from plastic molding machinery to gauges and instruments from Siemens and Mannesmann. Last year, Mannesmann sold its materials handling operations to Siemens. Combined revenues of Demag S.A.R.L. are 3.4 billion Euros.

In terms of revenue, Demag Cranes and Components GMbH, which will continue to be the name of the division, is the second largest in the new company at 760 million Euros. It is the largest in terms of employment with 6,600 people worldwide. Headquarters for the division will remain in Wetter, Germany.

"Being financially sound, this ownership change provides Demag with the stability to focus on core products while at the same time continuing our development of new products and the dedication of enhanced customer service," says Bill Persch, president of Demag Cranes and Components Corp., the Cleveland-based U.S. arm of the division.

In a separate deal, Demag mobile cranes was sold to Terex in August.