Advent International and Cinven complete acquisition of thyssenkrupp’s Elevator Technology business
Frankfurt/Essen, July 31, 2020 – International private equity firms Advent International (“Advent”) and Cinven (together the “Consortium”) have completed the acquisition of thyssenkrupp’s Elevator Technology business (“thyssenkrupp Elevator” or the “Group”) from thyssenkrupp AG (the “Transaction”).
thyssenkrupp Elevator is a leading global provider of elevators, escalators, and other innovative passenger transportation solutions to customers in more than 100 countries worldwide. Headquartered in Germany, the Group has operations in more than 1,000 locations. The Group generated revenues of c. €8.0bn in the financial year 2018/19.
Following strong performance in recent years and reflecting the global nature of the business, the Group has continued to trade well despite the COVID-19 period, showing significant resilience in the face of uncertain economic conditions based on its high levels of long-term contracted service revenues and the strong cash flow generation of the business.
As part of the Transaction, thyssenkrupp AG has reinvested in thyssenkrupp Elevator, acquiring a substantial minority stake, underlining the attractive value creation potential of the business as well as a commitment to Germany and the Group’s employees.
Bruno Schick, Partner and Head of DACH and Emerging Europe at Cinven commented:
“thyssenkrupp Elevator is a compelling investment opportunity with strong, long term growth drivers supported by predictable profit streams and cash flows from multi-year service contracts. It’s a business that has already demonstrated its ability to weather even the most difficult market conditions. Partnering with management and employees, we are committed to adding significant value to this truly outstanding business – including through investing in organic growth and acquisitions.”
“thyssenkrupp Elevator is one of the top 4 global Elevator & Escalators players, renowned for innovation and technology with a comprehensive product and service portfolio. Drawing on our deep experience in the industrial and business services sectors along with our global platform, we see significant opportunity to further support the company’s continued growth through product development, R&D and international expansion for the benefit of customers, suppliers and employees,” said Ranjan Sen, Managing Partner and Head of Germany at Advent International.
Peter Walker, CEO of thyssenkrupp Elevator said:
“Our new main shareholders, Advent and Cinven, have already shown huge determination and commitment to the business during the completion of the Transaction. Add to that the clear expertise and strategic vision they showed during the sale process and we know we have found the right partners to work with as we take the company forward as an independent business. There is much for all stakeholders of thyssenkrupp Elevator to be excited about, including the opportunity for growth through geographic expansion and strategic acquisitions. We’ll also have access to focused and substantial financial resources of our owners to achieve this as well as the funding of innovation and R&D. We have every reason to look to our independent future with ambition and optimism.”
About thyssenkrupp Elevator
thyssenkrupp Elevator’s product portfolio includes passenger and freight elevators, escalators and moving walkways, passenger boarding bridges, stair and platform lifts. The Group also has a customised service business that offers maintenance services for its entire product portfolio. The business operates a global sales and service network to ensure optimum proximity to its customers.
The Consortium has a shared investment philosophy of responsibly growing leading businesses and is committed to a long-term value creation plan for thyssenkrupp Elevator.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 350 private equity transactions in 41 countries, and as of March 31, 2020, had €44 billion in assets under management.
Advent International GmbH was established in Germany in 1991 and provides investment advice to Advent International Corporation through its Frankfurt-based advisory team. The team has advised on investments of about €5.2 billion in more than 30 companies across a variety of sectors and markets including Germany, Austria, Switzerland as well as Central and Eastern Europe. The Frankfurt team advises on buy-outs and growth equity investments in five core sectors, including business and financial services; healthcare; industrial and chemicals; retail, consumer and leisure; and technology.
Over the last three years, our German speaking investments include Innio, a leading global producer of reciprocating gas engines for power generation and mechanical drive/gas compression; Röhm, one of the global market leaders in methacrylate chemicals; Deutsche Fachpflege Gruppe, Germany’s largest outpatient intensive care producer and Concardis Payment Group, now part of Nets, a leading provider of digital payment solutions.
After 35 years dedicated to international investing, Advent International Corporation remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
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Founded in 1977, Cinven is a leading international private equity firm focused on building world-class European and global companies. With a track record spanning more than 30 years, Cinven’s focus is on delivering attractive returns to its funds’ investors. Cinven Funds have invested in more than 130 companies, and the firm currently has €22bn in assets under management.
Cinven focuses on six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials, and Technology, Media and Telecommunications (TMT). Cinven has more than 100 investment professionals and more than 190 staff across its global offices.
Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society. The firm has a strong track record of growing businesses organically and through buy and build.
Cinven has a strong track record in Germany and its funds and portfolio companies have acquired more than 50 companies in the DACH region to date. The companies in which Cinven is currently invested, headquartered in Germany, currently employ almost 31,000 people. Current investments in the region include: STADA, the European manufacturer of prescription generics and over-the-counter (‘OTC’) products; Synlab, a leading European provider of medical diagnostic services and Viridium, a leading specialist in the management of life insurance portfolios in Germany.
Cinven Capital Management (V) General Partner Limited, Cinven Capital Management (VI) General Partner Limited and Cinven Capital Management (VII) General Partner Limited are each authorised and regulated by the Guernsey Financial Services Commission and Cinven Partners LLP, the advisor to the Cinven Funds, is authorised and regulated by the Financial Conduct Authority.
In this press release ‘Cinven’ means, depending on the context, any of or collectively, Cinven Group Limited, Cinven Partners LLP, Cinven (LuxCo1) S.A., and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.
For more information, visit: www.cinven.com
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