Bain Capital has agreed to acquire a majority stake in Volkswagen’s marine engine business Everllence in a transaction valuing the business at €7.4bn, according to a report by the Financial Times.
Volkswagen will retain a 49% stake in the business following completion of the transaction. The German carmaker said the sale supports would allow it to focus on its core automotive operations.
Bain prevailed against competing bids from private equity groups including CVC and EQT. The process attracted significant attention across the buyout market given the scale of the asset and its position across marine propulsion and energy infrastructure markets.
Everllence, formerly MAN Energy Solutions, manufactures ship engines and power turbines and has benefited from demand linked to shipping markets and energy infrastructure development, including growing requirements for power generation supporting AI-related data centre expansion.
The sale forms part of Volkswagen’s ongoing efforts to reduce complexity, improve capital allocation and lower debt levels amid continued pressure on European automotive manufacturers.
Volkswagen said the agreement includes protections for Everllence’s five German sites through to the end of 2030, with compulsory redundancies excluded during that period.
The transaction marks another large-scale European industrial deal for Bain Capital following its acquisition of Stada, which was sold last year in a transaction valuing the pharmaceuticals group at approximately €10bn.
