Context

In one of the largest European LBOs in history, Thyssenkrupp AG agreed to sell its Elevator division to a consortium led by Advent and Cinven for an Enterprise Value of €17.2 billion. The transaction followed a highly competitive auction process where strategic bidders, such as Kone, were sidelined due to significant antitrust risks. To facilitate the deal and maintain a strategic link, Thyssenkrupp reinvested €1.25 billion to retain a minority stake. The sale was a critical move for the German conglomerate to address its high debt levels and offset massive losses in its steel and automotive sectors. As part of the agreement, the buyers provided extensive social guarantees, including the preservation of the German headquarters and existing production sites, securing the support of the IG Metall union and the supervisory board.

Target

Thyssenkrupp Elevator is a global leader in the vertical mobility industry, specializing in the manufacture, installation, and maintenance of elevators, escalators, and moving walkways. Operating in a highly resilient market, the company's business model is characterized by a significant portion of recurring service revenue, which accounts for high margins compared to new installations. With approximately 50,000 employees and €8.0 billion in revenue at the time of the deal, it represents the "crown jewel" of the Thyssenkrupp conglomerate. Its value proposition centers on innovative technologies, such as the MULTI rope-less elevator system, and a vast global maintenance network. Strategically, the business benefits from long-term urbanization trends and stringent safety regulations requiring constant equipment servicing.