Thyssenkrupp Elevator consortium seeks additional equity investors – report

Harriet Matthews
04 May 2020

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Thyssenkrupp Elevator's proposed acquirers – Advent, Cinven and RAG Stiftung – are seeking additional equity investors to reduce their exposure and to help fund the deal, according to a report by the Financial Times.

The consortium agreed to acquire the company in February 2020 in a deal reportedly valued at €17.2bn, marking the largest ever private-equity-backed buyout in the DACH region. The other consortium in the final round comprised Carlyle, Blackstone and the Abu Dhabi Investment Authority.

However, the winning consortium has since spoken with other potential investors including Brookfield Asset Management and the Canada Pension Plan Investment Board, according to the report.

Singapore-based GIC and the Abu Dhabi Investment Authority have so far contributed €2bn in equity, according to the report.

The current funding comprises approximately €7bn in equity with the remainder backed by debt, the report said.

Cinven is planning to invest from its seventh fund, which held a final close in May 2019 on €10bn. The vehicle deploys equity tickets from €200m and will make 10-12 investments.

Advent invested via Advent International GPE IX, which held a final close in June 2019 on $17.5bn, surpassing its target of $16bn. Thyssenkrupp will be the fourth investment from the vehicle, according to Unquote Data.

Thyssenkrupp said in a statement at the time of the announcement in February 2020 that it planned to reinvest €1.25bn for a minority stake in the business. The rest of the proceeds would be used to reduce the company's debt and would be reinvested in the business, the statement added.

Thyssenkrupp produces, installs and maintains passenger and freight elevators, escalators and moving walkways, passenger boarding bridges, staircases and platform lifts. The company generates revenues of €8bn and reportedly has EBITDA of €1bn.