Consortium Carves Elevator Business from Thyssenkrupp

Advent International, Cinven, and RAG-Stiftung (collectively the Buyers) have agreed to acquire Thyssenkrupp’s elevator technology business (Thyssenkrupp Elevator). As part of the transaction, Thyssenkrupp will reinvest in Thyssenkrupp Elevator and will have a minority interest in the company.

Thyssenkrupp Elevator is a provider of elevator equipment and systems including passenger and freight elevators, escalators and moving walkways, passenger boarding bridges, stair and platform lifts as well as maintenance, repair and modernization services.

The business, with more than 50,000 employees, sells and services its products through a global sales and service network with more than 1,000 locations worldwide. Thyssenkrupp Elevator has annual revenues of $9 billion and is headquartered in Essen, Germany with a US headquarters in Atlanta.

The Buyers see Thyssenkrupp Elevator as an attractive investment based on its strong market position in the US, Europe and Asia; market growth opportunities from increased urbanization; and significant buy and build and consolidation opportunities in the fragmented elevator equipment and services industry. In addition, the Buyers plan to expand Thyssenkrupp Elevator’s service business for its own and third-party elevators.

“Thyssenkrupp Elevator has established itself as an international market leader, with a strong and innovative product portfolio. We look forward to working alongside Cinven and RAG-Stiftung to leverage our collective expertise and capital resources and to build on this excellent platform for further growth, thereby creating a strong, independent industrial company,” said Ranjan Sen, a managing partner at Advent International.

Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. The firm has 15 offices in 12 countries and employs 195 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $57 billion in assets under management and has completed more than 345 private equity transactions.

“Cinven is delighted to invest in and accelerate the growth of Thyssenkrupp Elevator both organically and through further acquisitions. Further investment in product development, R&D and international expansion will enable us to grow the business sustainably over the long-term,” said Bruno Schick, a partner at Cinven. “Alongside Advent and RAG-Stiftung, we look forward to partnering with management to shape the next phase of this outstanding business.”

Cinven invests in excess of €100 million of equity in companies with enterprise values typically greater than €300 million Sectors of interest include business services, financial services, healthcare, industrials, consumer, technology, media and telecommunications. The firm, founded in 1977, has nine international offices, including one in New York City, and is headquartered in London.

Essen, Germany-based RAG-Stiftung, led by Chairman Bernd Tönjes, is a public trust formed to manage the future financial obligations of the German coal mining industry related to pit water and groundwater purification, subsidence, and land reclamation.

Essen, Germany-based Thyssenkrupp AG is an industrial engineering and steel production conglomerate with annual revenues of more than $46 billion, more than 160,000 employees, and operations in 80 countries.

© 2020 Private Equity Professional | March 2, 2020

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