Thyssenkrupp Announces Sale of Elevator Technology Business to Consortium | Financial Buzz

Thyssenkrupp Announces Sale of Elevator Technology Business to Consortium

Thyssenkrupp reported the sale of its Elevator Technology business to a consortium led by Advent, RAG foundation and Cinven.  The decision was approved by the Executive Board on Thursday by the Supervisory Board of Thyssenkrupp AG.  The close of the transaction is anticipated by the end of the current fiscal year for the price of €17.2 billion.  Partial of the purchase price (€1.25 billion) will be invested in a stake in the elevator business. 

Martina Merz, CEO of thyssenkrupp AG: “With the sale, we are paving the way for thyssenkrupp to become successful. Not only have we obtained a very good selling price, we will also be able to complete the transaction quickly. It is now crucial for us to find the best possible balance for the use of the funds. We will reduce thyssenkrupp’s debt as far as is necessary and at the same time invest as much as is reasonable in developing the company. With this, thyssenkrupp can pick up speed again.”

Buyers have agreed to manage the Thyssenkrupp elevator as a global group.  “We are not pleased to part with our employees and the elevator business. Nevertheless, today is a good day for everyone involved. With this step, we are opening up real prospects for the future: for the elevator business as an independent company and, with the financial solidity we have gained, also for all other areas of thyssenkrupp,” Martina Merz added.