The international private-equity firms Advent International (Advent) and Cinven announced together with RAG-Stiftung, Essen/Germany, that they have signed binding agreements with thyssenkrupp AG to acquire thyssenkrupp Elevator Technology. As part of the transaction, thyssenkrupp AG will reinvest in the elevator business and acquire a substantial minority share in the company. This underlines the attractive value creation potential of the business and represents a commitment to the site in Germany and the Group employees.
thyssenkrupp Elevator is a leading international supplier of elevator technology and active at more than 1,000 sites across the globe. The company is headquartered in Germany and generated a turnover of 8 bn € in the 2018/2019 financial year. thyssen-krupp Elevator offers innovative solutions for customers in over 100 countries. The product range includes passenger and freight elevators, escalators and moving walks, passenger boarding bridges, stair and platform lifts as well as tailored services including maintenance for the entire range. thyssenkrupp Elevator operates a global sales and service network to ensure the company is always as close as possible to its customers.
thyssenkrupp Elevator is an appealing investment for the consortium of Advent, Cinven and the RAG-Stiftung:
- The company has a very strong position on the US, European and Asian markets.
- Structural trends like urbanisation and continually increasing mobility in cities are driving demand, resulting in significant prospects for growth.
- As the market is very fragmented, there are appealing options for acquisition and consolidation.
- The consortium’s planned investments in research and development, the product range and geographical expansion enable further organic and inorganic growth. This holds true in particular for the growth markets in Asia and for the development of new energy-efficient products.
- The service business for own and third-party elevators offers further potential for expansion.
“Cinven is happy to be able to accelerate the growth of thyssenkrupp Elevator – both organic and through further acquisitions with its investments. Further investments in product development, research and development and the international expansion will contribute to the company’s long-term sustainable growth”, said Bruno Schick, Partner and Head of Division for DACH and Emerging Europe at Cinven. “Together with Advent and the RAG-Stiftung, we are looking forward to collaborating with the Management to make optimum use of the company’s next phase of growth”.
“thyssenkrupp Elevator has established itself as a leading international company with a strong and innovative product range. We are looking forward to working with Cinven and the RAG-Stiftung and use our combined expertise and financial power in order to develop this excellent platform further. It is our goal to create a strong, independent industrial company”, said Ranjan Sen, Managing Partner and Head of Division for Germany at Advent.
“We are very aware of the tradition and history behind thyssenkrupp Elevator. The consortium is committed to maintaining the company headquarters and strong roots in Germany. The stake in thyssen-krupp Elevator, which we expect to yield very stable profits, is the perfect fit for the portfolio of RAG-Stiftung”, said Bernd Tönjes, Chairman of the Executive Board at the RAG-Stiftung. “The success of an innovative company like thyssenkrupp Elevator with high quality standards is down to its employees. As such, we take our duties as responsible investors very seriously.”
Germany is an important market for Advent and Cinven. Both have maintained subsidiaries in Frankfurt for more than 20 years and are successfully involved in over 39 companies in Germany. Advent and Cinven are very experienced in the industrial and business service sector with shares in a total of 130 companies. In addition, the RAG-Stiftung has close ties with the Rhine-Ruhr region and is tasked with helping to sustainably transform the region. The foundation is an investor with a long-term outlook, bearing responsibility for financing the perpetual obligations arising from the coal mining industry in the Ruhr region, the Saar region and in Ibbenbüren.
The consortium follows a joint investment philosophy which is aimed at systematically enabling further sustainable growth for leading companies. As a result, the plan for thyssenkrupp Elevator also envisions long-term value enhancement. The consortium will support the company as a committed, fair and responsible owner. The investors have many years of experience in working with participation committees and place great value on the partnership with employee representatives. In this context, the consortium is planning to continually invest in further education and training for employees. The consortium will also invest to sustainably maintain the Group’s sites in all regions.
The transaction is expected to be concluded by the end of the third quarter of 2020, subject the usual transactional conditions and regulatory approvals. (RAG-Stiftung/Si.)