Volkswagen has drawn bids from top private equity firms, including EQT, Blackstone, and CVC Capital Partners, for its Everllence division, the shipping engines and heat pump business formerly known as MAN Energy Solutions, according to a report by the Financial Times.
The report cites sources familiar with the matter as saying that the division is being valued between €5bn and €6bn, with initial offers having closed last week. Other private equity groups previously reported to have expressed interest include Clayton, Dubilier & Rice and industrial carve-out specialist KPS Capital Partners, alongside interest from strategic industrial buyers.
Volkswagen plans to spin off a majority stake in Everllence while retaining a significant minority holding. The sale aligns with the automaker’s broader restructuring strategy amid weaker demand and growing competition from Chinese carmakers. VW reported net cash flow of €6bn from its automotive division in 2025, exceeding internal forecasts as the company continues to cut costs.
The Everllence auction coincides with Continental’s planned divestment of ContiTech, its belts and hoses business. Continental, focused on streamlining operations around tyres, is targeting a sale this year despite ContiTech’s profit warning and an operating margin of 4.9% in 2025.
European private equity firms have increasingly capitalised on such carve-outs, seeing opportunities to boost underperforming divisions through investment and operational improvements. PitchBook data show that nearly €60bn of European PE carve-outs were completed through early November 2025, representing 13.5% of deals by value.
