German industrial giant thyssenkrupp has divested its elevator technology business to a consortium of private equity firms led by Advent International and Cinven in a sale worth €17.2 billion.
thyssenkrupp elevator
The sale provides a financial lifeline to the cash-strapped conglomerate but also means it has lost its most valuable asset.
Following strong performance in recent years and reflecting the global nature of the business, the elevator business has performed well despite the outbreak of coronavirus. With operations worldwide and more than 50,000 employees, thyssenkrupp Elevator achieved sales of around €8 billion in fiscal year 2018/2019.
Thyssenkrupp said it would use the funds from the sale to cut debt, develop some of its other businesses, pay for restructuring measures as well as to buy back around a 15% stake in the elevator business to secure its pension liabilities.
Peter Walker, CEO thyssenkrupp Elevator said: “The successful closing marks a new chapter in our company’s history. Together with our new owners we will further strengthen our position as an independent global leading, Germany-based E&E company, leveraging our unique strengths with the dedication of our employees and service being at the heart of our business.”
Ranjan Sen, Managing Partner and Head of Germany at Advent International said: “It is a great pleasure to support thyssenkrupp Elevator as it emerges as a stand-alone company. We see significant potential to further strengthen the company’s strong market position and are looking forward to utilising our collective expertise and capital resources to build on this excellent platform for further sustainable growth.”
Bruno Schick, Partner and Head of DACH and Emerging Europe at Cinven: “In partnership with the management and employees, we will continue to develop thyssenkrupp Elevator through investing in organic growth and carefully targeted acquisitions. We are committed to providing funds to grow the global footprint of thyssenkrupp Elevator – especially in Asia – through add-on acquisitions, new energy-efficient product development and R&D.”
Following the change of ownership, thyssenkrupp Elevator will be relocating its headquarters close to Düsseldorf’s Airport. The move is planned for the first quarter of 2021.
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