The Wall Street Journal reports that Siemens AG, the German conglomerate, has given up on trying to sell its mail processing equipment operation. The company plans instead to spin off the division as a separate company.
Siemens has been a major supplier to the US Postal Service over the years, providing, among other items, the Advanced Facer Canceller System (AFCS) and the Postal Automated Redirection System (PARS).
Orders have dropped sharply in recent years, however. In 2012, the company was the #5 supplier to the USPS, with $167 million in contracts. Last year it dropped to #32, with sales of about $42 million.
FRANKFURT— Siemens AG SIE.XE -0.34% has abandoned its plans to sell its baggage-handling and parcel-sorting operation, the German industrial conglomerate said Tuesday, after failing to find a buyer.
Siemens will carve out the airport and postal-logistics activities as a separate company in the coming months.
The division, which has about 3,500 employees, generates an annual revenue of about €900 billion ($1.2 billion). Siemens said in late 2012 that it wanted to sell the operation because of a lack of synergies with the group’s other divisions, but has reversed course after attempts to find a buyer remained fruitless for more than a year.