Last May, Germany based Thyssenkrupp decided to divide itself into two separate companies as part of a major restructuring effort. That strategy called for spinning off its profitable Elevator Technology business unit via an Initial Public Offering or by putting that unit up for sale.
Elevator Technology, in the fiscal year ended Sept. 30, 2019, generated 907 million Euro (US$1 billion) in cash flow from 7.96 billion Euro in net sales, both up around 5% from the previous year. Thyssenkrupp’s total revenue, just under 42 billion Euro, was up only 1%, and the company reported a 260 million Euro net loss on top of a 12 million Euro loss the previous fiscal year.
Thyssenkrupp, as a corporation, is also groaning under 8.5 billion Euro in pension obligations and 5.1 billion Euro in net debt.
The Elevator Technology unit—which made waves a few years ago with MULTI, the industry’s first sideways-moving elevator transport system—has since drawn interest from at least four investor groups, including one that includes Finnish engineering firm Kone Oyj and CVC Capital Partners, which last week reportedly made a non-binding offer of 17 billion Euro. Bloomberg reports that Kone gave Thyssenkrupp the option of receiving all cash or a combination of cash and stock for the elevator business. And to mollify regulators over any antitrust issues, Kone said it would hand the Elevator Technology operations in Europe to CVC.
Last year, regulators scotched Thyssenkrupp’s attempt to forge a joint venture between its Steel Europe business unit and Tata Steel Ltd.
Last November, Reuters reported that Kone proposed paying Thyssenkrupp a multibillion-euro breakup fee (reportedly the equivalent of US$3.3 billion) to improve its position in the company’s auction of its elevator unit.
The other investor groups vying to acquire Thyssenkrupp’s Elevator Technology unit reportedly include a consortium of Blackstone Group, Carlyle Group, and Canada Pension Plan Investment Board. Advent International, Cinven and the Abu Dhabi Investment Authority form another investor group. And Brookfield Asset Management partnered with Temasek Holdings Pte to bid. These offers reportedly were all under 16 billion Euro, but suitors will have the opportunity to adjust their bids next month.
Thyssenkrupp has also disclosed that it plans to put its plant-building unit—which makes chemicals, cement, and fertilizer plants—on the auction block, possibly selling the division in parts.
Related Stories
Building Technology | Jun 1, 2021
Orro Announces Google Nest Integration for the Orro Switch
Orro, creators of the professional-grade top-of-the-line Orro Smart Living System, today announced the integration of Nest products to Orro. As a certified partner in Google’s Device Access program, this latest Orro integration allows homeowners to have seamless control and access to Nest thermostats and doorbells from any Orro Switch throughout the home – creating a single unified smart home system with advanced, intelligent ambient control.
Coronavirus | Mar 11, 2021
The Weekly show, March 11, 2021: 5 building products for COVID-related conditions, and AI for MEP design
This week on The Weekly show, BD+C editors speak with AEC industry leaders about building products and systems that support COVID-related conditions, and an AI tool that automates the design of MEP systems.
AEC Tech | Mar 4, 2021
The Weekly show, March 4, 2021: Bringing AI to the masses, and Central Station Memphis hotel
This week on The Weekly show, BD+C editors speak with AEC industry leaders about the award-winning Central Station Memphis hotel reconstruction project, and how Autodesk aims to bring generative design and AI tools to the AEC masses.
Building Technology | Feb 10, 2021
Garney Construction trials new heat stress prevention device
The device helps to prevent heat injuries on job sites.
Modular Building | Jan 26, 2021
Offsite manufacturing startup iBUILT positions itself to reduce commercial developers’ risks
iBUILT plans to double its production capacity this year, and usher in more technology and automation to the delivery process.
AEC Tech | Dec 8, 2020
COVID-19 affects the industry’s adoption of ConTech in different ways
A new JLL report assesses which tech options got a pandemic “boost.”
Contractors | Dec 4, 2020
‘Speed to market’ defines general contractor activities in 2020
Contractors are more receptive than ever to ways that help get projects done faster.
3D Printing | Nov 27, 2020
The Fibonacci House: A test case of 3D construction printing
The Fibonacci House, which we have named after Leonardo Fibonacci, the medieval Italian mathematician, illustrates the potential of 3DCP and demonstrates how a complex design and challenging logistics can be solved through pragmatic planning and 3DCP technology.
University Buildings | Nov 25, 2020
Stanford bioresearch quad's new public art piece, “Morphogenesis”
Stanford University's Morphogenesis installation connects user interaction with a large-scale media mesh platform.
Smart Buildings | Nov 20, 2020
The Weekly show: SPIRE smart building rating system, and pickleball court design tips
The November 19 episode of BD+C's The Weekly is available for viewing on demand.