Volkswagen AG will retain a 49% stake in the company for the medium term, remaining a key shareholder.
The Everllence liquefied natural gas power plant in Gibraltar. Driven by the energy transition, expansion in global infrastructure markets, and rising power demand fueled by digitalization and data center growth, Everllence is currently experiencing robust order intake.
Volkswagen AG (share price up 2.26%) has reached an agreement to sell a majority stake in its marine engine subsidiary Everllence to Bain Capital for approximately $8.4 billion, aiming to optimize its investment portfolio and bolster its financial reserves.
Amid intensifying geopolitical tensions, fierce market competition, and increasing trade barriers in the automotive industry, the German carmaker is undertaking a comprehensive restructuring to reduce costs and enhance operational agility.
Volkswagen announced late Wednesday that it will divest a 51% stake in Everllence. The company specializes in developing marine and power plant engines and is also involved in large-scale heat pumps and carbon capture and storage technologies. Following the transaction, Volkswagen will continue to hold a 49% stake in the medium term, maintaining its status as a major shareholder.
The total consideration for the deal is about €7.4 billion, equivalent to $8.4 billion.
In an official statement, Volkswagen said, "Through this intended transaction, Volkswagen aims to solidify the financial foundation for its transformation process and significantly improve its financial position."
The automaker stated last week that despite implementing a sweeping restructuring plan involving significant job cuts and streamlining production capacity, the coming years remain a crucial period for the company's development, with the market environment continuing to pose challenges.
Everllence, formerly known as MAN Energy Solutions, was acquired by Volkswagen in 2018. As of the end of May this year, the business unit had a book value of approximately €3.4 billion on Volkswagen's balance sheet. Benefiting from the global energy transition, infrastructure investment boom, and increased power demand driven by digitalization and data center expansion, the subsidiary is seeing exceptionally strong order demand.
The agreement with Bain Capital includes protective provisions: employment at the company's five production sites in Germany will be safeguarded until the end of 2030, prohibiting compulsory layoffs during this period.
Volkswagen AG's Chief Financial Officer and Chief Operating Officer, Arno Antlitz, stated that this transaction will help the company streamline its organizational structure while also improving operational flexibility and financial health.
The parties aim to complete the acquisition by the end of 2026, with final closing subject to approval by various regulatory authorities.
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