Advent International and Cinven complete acquisition of thyssenkrupp’s Elevator Technology business
Private equity firms Advent International (Advent) and Cinven have completed the acquisition of thyssenkrupp’s Elevator Technology business (thyssenkrupp Elevator) from thyssenkrupp AG.
thyssenkrupp Elevator is a specialist provider of elevators, escalators, and other passenger transportation solutions to customers in more than 100 countries worldwide. Headquartered in Germany, the Group has operations in more than 1,000 locations. The Group generated revenues of cEUR8.0 billion in the financial year 2018/19.
Following strong performance in recent years and reflecting the global nature of the business, the Group has continued to trade well despite the COVID-19 period, showing significant resilience in the face of uncertain economic conditions based on its high levels of long-term contracted service revenues and the strong cash flow generation of the business.
As part of the Transaction, thyssenkrupp AG has reinvested in thyssenkrupp Elevator, acquiring a substantial minority stake, underlining the attractive value creation potential of the business as well as a commitment to Germany and the Group’s employees.
Bruno Schick, Partner and Head of DACH and Emerging Europe at Cinven says: “thyssenkrupp Elevator is a compelling investment opportunity with strong, long term growth drivers supported by predictable profit streams and cash flows from multi-year service contracts. It’s a business that has already demonstrated its ability to weather even the most difficult market conditions. Partnering with management and employees, we are committed to adding significant value to this truly outstanding business – including through investing in organic growth and acquisitions.”
“thyssenkrupp Elevator is one of the top 4 global Elevator & Escalators players, renowned for innovation and technology with a comprehensive product and service portfolio. Drawing on our deep experience in the industrial and business services sectors along with our global platform, we see significant opportunity to further support the company’s continued growth through product development, R&D and international expansion for the benefit of customers, suppliers and employees,” said Ranjan Sen, Managing Partner and Head of Germany at Advent International.
Peter Walker, CEO of thyssenkrupp Elevator, says: “Our new main shareholders, Advent and Cinven, have already shown huge determination and commitment to the business during the completion of the Transaction. Add to that the clear expertise and strategic vision they showed during the sale process and we know we have found the right partners to work with as we take the company forward as an independent business. There is much for all stakeholders of thyssenkrupp Elevator to be excited about, including the opportunity for growth through geographic expansion and strategic acquisitions. We’ll also have access to focused and substantial financial resources of our owners to achieve this as well as the funding of innovation and R&D. We have every reason to look to our independent future with ambition and optimism.”