Thyssenkrupp sells elevator unit for $18.7 billion to Advent, Cinven consortium


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Thyssenkrupp sells elevator unit for $18.7 billion to Advent, Cinven consortium

On Thursday, Thyssenkrupp AG, the Essen-based German multinational manufacturing industry conglomerate and the world’s largest steel producer, said in a statement that its management board had agreed to an entire sell-off of its elevator division to a syndicate of Advent, Cinven and German RAG foundation for a whopping upsum of $18.7 billion (€17.2 billion), wrapping up a nearly two-month long bidding war over the German industrial conglomerate’s elevator unit at such a buyout bid what could have been one of the largest takeover deals this year.

Besides, followed by reveal of the media headline that ThyssenKrupp had sold its entire elevator division, sources familiar with the bidding process said that a consortium led by the world’s largest alternate asset manager Blackstone Group Inc., Canada’s Pension Plan Investment Board alongside Carlyle Group Inc.

had submitted a significantly lower bid which eventually let their buyout bid down. On top of that, another source close to the bidding process was quoted saying in terms of anonymity on Thursday (February 27th) that the $18.7 billion Thyssenkrupp’s elevator unit buyout deal, which has been the largest since the great financial depression of 2007, would be valuing the world’s largest elevator maker at more or less 18 times of its core earnings, while the deal was expected to be concluded by the second quarter of 2020.