Private equity firms eyeing Volkswagen’s Everllence engine unit

Several backstage equity firms are reportedly exploring the imaginable acquisition of a bulk involvement successful Volkswagen’s dense diesel motor portion Everllence.

Sources acquainted with the concern told Bloomberg that EQT has been weighing a imaginable connection unneurotic with Singapore sovereign wealthiness money GIC.

Other parties said to beryllium considering bids see CVC Capital Partners, Advent, Bain Capital, KPS Capital Partners and Clayton Dubilier & Rice.

Japanese trading location Mitsui & Co. whitethorn besides person an interest.

The quality comes arsenic the German carmaker continues to measure options for divesting non-core assets.

The sources indicated that Everllence could beryllium valued successful the portion of €5bn ($5.80bn) to €6bn if a transaction goes ahead.

Indicative, first-round offers are expected by 12 February, they said.

Discussions are inactive successful advancement and determination is nary certainty that Volkswagen oregon the funny investors volition proceed with a deal.

A spokesperson for Volkswagen confirmed to Bloomberg that the radical is reviewing strategical alternatives for Everllence but declined to supply further detail.

The imaginable divestment comes arsenic Volkswagen works to boost profitability and simplify its operations amid technological change, weaker request successful respective markets and increasing contention from rivals including Tesla and BYD.

Everllence, which produces engines for ships arsenic good arsenic turbines for powerfulness generation, was antecedently known arsenic MAN Energy Solutions.

In December, Volkswagen’s Audi part agreed to merchantability its controlling involvement successful Italdesign Giugiaro to California-based exertion radical UST, with Lamborghini retaining a important interest.

Volkswagen has been advised connected the Everllence process by Goldman Sachs Group and JPMorgan Chase.

The concern generated net earlier involvement and taxes of €337m connected revenues of €4.3bn successful 2024, according to Volkswagen’s yearly study cited by Bloomberg.

Earlier this month, Volkswagen Group and Qualcomm Technologies announced a Letter of Intent (LOI) for a semipermanent proviso statement to present precocious infotainment and connectivity capabilities powered by Qualcomm’s Snapdragon Digital Chassis solutions.

"Private equity firms eyeing Volkswagen’s Everllence motor unit" was primitively created and published by Just Auto, a GlobalData owned brand.

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