Advent International and Cinven have agreed to acquire thyssenkrupp’s Elevator Technology business, together with the RAG-Stiftung.
Advent International and Cinven have agreed to acquire thyssenkrupp’s Elevator Technology business, together with the RAG-Stiftung.
The deal is expected to close by the end of the third quarter of 2020, subject to regulatory approval. As part of the deal, thyssenkrupp AG will reinvest in thyssenkrupp Elevator and will acquire a substantial minority stake.
Headquartered in Germany, thyssenkrupp Elevator is a provider of elevator technology with operations in more than 1,000 locations worldwide. The group generated revenues of €8 billion in the financial year 2018/2019.
thyssenkrupp Elevator’s product portfolio includes passenger and freight elevators, escalators and moving walkways, passenger boarding bridges, stair and platform lifts as well as a customised service business including maintenance of its entire product portfolio.
Having invested in 130 companies in the industrial and business services sectors, Germany is a key market for Advent and Cinven.
The consortium views thyssenkrupp Elevator as an attractive investment opportunity given its market position in the US, Europe and Asia. Furthermore, the market growth opportunity is supported by structural trends such as urbanisation and increased urban mobility with greater demands for access and convenience, according to the international private equity firms.
Cinven said it will 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, partner and head of DACH and Emerging Europe at Cinven.
“thyssenkrupp Elevator has established itself as an international market leader, with a strong and innovative product portfolio”, said Ranjan Sen, managing partner and head of Germany at Advent International.
“The consortium is committed to maintaining [the company’s] headquarters and its strong roots in Germany. “For an innovative company with high quality standards like thyssenkrupp Elevator, its employees are the most important asset,” said Bernd Tönjes, chairman of the executive board at RAG-Stiftung.
According to Ranjan Sen, managing partner and head of Germany at Advent International, there is significant untapped growth potential in high growth regions, such as Asia in particular.
