Several private equity firms including EQT and Advent are eyeing the acquisition of a potential majority stake in Volkswagen AG’s heavy diesel engine and power-plant unit, Everllence SE, as part of the automaker’s broader asset disposal strategy, according to a report by Bloomberg.
Sources indicate EQT is considering a joint bid with Singapore’s sovereign wealth fund GIC Pte, while CVC Capital Partners, Advent, Bain Capital, KPS Capital Partners, and Clayton Dubilier & Rice are also among the potential bidders.
Everllence, formerly MAN Energy Solutions, could be valued at €5bn-€6bn, with first-round bids expected by 12 February. The unit generated €337m in EBIT on revenues of €4.3bn in 2024. Volkswagen has engaged Goldman Sachs and JPMorgan Chase to advise on the potential sale.
The divestment forms part of VW’s efforts to streamline operations, bolster profitability, and respond to technological disruption and intensifying competition from rivals such as Tesla and BYD. Discussions are ongoing, and both Volkswagen and the interested firms may ultimately decide against a deal.
