Advent International and Cinven have agreed to acquire thyssenkrupp’s Elevator Technology business, together with the RAG-Stiftung.
The deal is scheduled to close by the end of the third quarter of 2020, subject to approval by the regulators. Thyssenkrupp AG will reinvest in thyssenkrupp Elevator as part of the contract, and will gain a large minority interest.
Based in Germany, Thyssenkrupp Elevator, is an elevator service company with operations at more than 1,000 locations worldwide. In the 2018/2019 financial year the company reported revenues of € 8 billion.
Thyssenkrupp Elevator is regarded by the consortium as an attractive investment opportunity, considering its market place in the US, Europe and Asia. In addition, according to the international private equity firms, the business growth potential is driven by structural developments such as urbanization and increased urban mobility with rising demands for access and convenience.
Cinven said the growth of thyssenkrupp Elevator would be boosted both organically and by further acquisitions.
“More investment in product growth, R&D and international expansion will allow us to sustainably grow the company over the long term,” said Bruno Schick, Cinven’s partner and head of DACH and Emerging Europe..
According to Ranjan Sen, Advent International’s managing partner and head of Germany, significant untapped growth potential exists in high-growth regions, especially asia.
Source: Private Equity Wire