Bain Capital has agreed to purchase a controlling stake in Volkswagen's heavy-duty diesel engine subsidiary, concluding one of Europe's most fiercely contested private equity auctions.
According to an announcement from Volkswagen AG, the private equity firm has entered into an exclusive agreement to acquire a 51 percent stake in Everllence. The automaker stated the transaction will strengthen its financial position and is expected to yield approximately €7.4 billion ($8.4 billion) in proceeds for the company. Volkswagen intends to retain a 49 percent holding in the subsidiary over the medium term.
Sources familiar with the matter indicate that Bain prevailed over rival bidders, including CVC Capital Partners Plc and a consortium led by EQT AB. The individuals requested anonymity as the information is not public. The EQT consortium included major Volkswagen shareholders Porsche Automobil Holding SE and the Qatar Investment Authority.
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