Business
Bain Capital Set to Acquire Volkswagen’s Marine Engine Arm
Volkswagen is moving closer to selling a majority stake in its Everllence marine engine unit to Bain Capital, with the transaction expected to rank among Europe's largest industrial divestments of the year.
Key Highlights
- Bain Capital is acquiring a majority stake in Volkswagen’s Everllence business.
- It values the unit at €8 billion to €9 billion.
- Everllence is experiencing an increasing demand from the shipping and AI data centre markets.
Bain Capital to take majority stake in Volkswagen’s Marine Engine Business Everllence. The private equity firm triumphed over competitors like CVC and EQT in the bidding race. In its bid for the business, EQT had teamed up with Porsche SE and Qatar.
Volkswagen has aimed to list the business this year in one of Europe’s biggest industrial carve-outs as it seeks funds to restructure its automotive activities. Last year, sources estimated an Everllance was worth €8 billion to €9 billion.
Competitive Bidding Process
Despite competition with some of the largest private equity firms in the world, Bain Capital was accepted as the lead bidder. Porsche SE holds 53.3% of Volkswagen’s voting rights, and Qatar’s sovereign wealth fund owns a 17% stake.
Background
Company Everllence, formerly MAN Energy Solutions, produces large diesel engines for the international shipping industry.
The company has also identified growth potential from increased demand for generators used to drive artificial intelligence data centres, thereby diversifying its business beyond traditional marine applications.
Source: Reuters
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