According to a report from Bloomberg News, U.S. buyout group Carlyle Group Inc is closing in on a deal to acquire Siemens AG’s mechanical drive arm Flender for around $2.37 billion (2 billion euros).

A deal could potentially be announced later this week.

“Last week, Siemens had asked Carlyle, Triton, CVC and Brookfield to submit final offers for the business, which has earnings before interest, tax, depreciation and amortization of just above 200 million euros and could be valued at 8-9 times that,” said sources.

According to Bloomberg’s report, Carlyle outbid Brookfield in the end to snag the deal. Sources have warned that the terms of the deal are not finalized and could still be delayed or even fall apart.

While Carlyle did not immediately respond to requests for a comments, Siemens declined to comment,

Flender supplies Winergy branded gear boxes and generators for gears and couplings for cranes, wind turbines, oil and gas production, ships, as well as components for the chemicals, cement, pharma, and food industries.

In 2005, Siemens had acquired Flender from Babcock Borsig and now intends to sell it since it did not live up to its growth and profitability expectations.

The potential divestiture is a part of the industrial conglomerate’s plans to streamline its operations. ($1 = 0.8436 euros)

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