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
| Sep 29, 2011
Kohler supports 2011 Solar Decathlon competition teams
Modular Architecture > In a quest to create the ultimate ‘green’ house, 20 collegiate teams compete in Washington D.C. Mall.
| Sep 23, 2011
Curtainwall façade installation at Ohio State Cancer and Critical Care facility
A sophisticated curtainwall facade will be installed at the new OSU Cancer and Critical Care facility.
| Sep 23, 2011
Smart windows installed at NREL
The self-tinting heat-activated filter allows solar heat into the building when it is desired, such as on a sunny winter day.
| Sep 23, 2011
Okanagan College sets sights on Living Buildings Challenge
The Living Building Challenge requires projects to meet a stringent list of qualifications, including net-zero energy and water consumption, and address critical environmental, social and economic factors.
| Sep 20, 2011
PPG, Pleotint to co-market environmentally adaptive glazing technology with low-e glass
Laminated between two lites of glass, SRT interlayer may be used monolithically or within an insulating glass unit.
| Sep 14, 2011
Empire State Building achieves LEED Gold ?
The 2.85 million-sf building is celebrating its 80th anniversary while nearing completion of its renewal and repurposing to meet the needs of 21st Century businesses.
| Sep 14, 2011
Thornton Tomasetti’s Poon named to the Council on Tall Buildings and Urban Habitat’s Board of Trustees
During his 30-plus years of experience, Poon has been responsible for the design and construction of super high-rise structures, mixed-used buildings, hotels, airports, arenas and residential buildings worldwide.
| Sep 12, 2011
LACCD’s $6 billion BIM connection
The Los Angeles Community College District requires every design-build team in its massive modernization program to use BIM, but what they do with their 3D data after construction is completed may be the most important change to business as usual.
| Sep 12, 2011
Scan, Deconstruct, Rebuild
How laser scanning helped improve construction schedules, plans, and final designs for a major reconstruction project.
| Sep 12, 2011
PVs play new roles as a teaching tool
Solar installations are helping K-12 schools around the country save money and teach students the intricacies of renewable energy sources.