Volkswagen accelerates the portfolio restructuring and tightens a exclusive agreement with Bain Capital for sell the majority of Everllence, the former Man Energy Solutions. The operation concerns the 51% of the capital and will bring into the coffers of the German group approximately 7,4 billion euros through a leveraged buyout. The Wolfsburg-based company will retain a 49% stake, confirming its intention to maintain a significant role in the company even after the transfer of control.
The move follows a competitive process that attracted interest from several major private equity firms and industrial and financial investors. Among the bidders were CVC, EQT, Porsche SE, and Qatari investors. Ultimately, Bain Capital was chosen, now called upon to support the new development phase of a group operating in increasingly strategic sectors, from marine engines to energy infrastructure to decarbonization technologies.
Volkswagen strengthens its balance sheet and focuses on the automotive sector
For Volkswagen, the sale has the simple aim of strengthen the financial position as the group faces a complex industrial transformation. The automotive sector is under pressure from electrification, Chinese competition, customs duties, and the need to focus resources on its core business. The sale of a majority stake in Everllence therefore allows free up capital without completely exiting a business considered solid and with growth prospects.
“Over the past few years, Everllence has developed into a success story we can be proud of,” said Oliver flowerVolkswagen Group CEO, “After the 2018 acquisition, we reorganized and strengthened the company. Today, Everllence is one of the world's leading manufacturers of large engines, turbomachinery, and decarbonization solutions. Now is the right time to take the next step: selling a majority stake to a strong new partner. With this transaction, we want tocreate added value for everyone: Leaner structures and processes will enable Everllence to achieve further growth in attractive markets such as data centers, energy, and maritime. At the same time, it will allow us to focus even more on our core business.
Everllence, from marine engines to decarbonization
Everllence has approximately 16.000 employees and recorded revenues of €4,9 billion. The company is among the world's leading manufacturers of large engines, turbomachinery, and decarbonization solutions. Its roots date back to 1758, with the founding of a foundry in Germany, and over time the group has undergone several transformations, including the name change from MAN Energy Solutions to Everllence.
The heart of the activity remains linked to the marine engines, a market in which Everllence competes with players such as Wärtsilä and WinGD. But the company has gradually expanded into technologies considered central to the energy transition, such as large-scale heat pumps, electrolyzers for hydrogen production, and carbon capture and storage solutions.
In recent years, the company has also focused on dual-fuel marine engines designed for alternative fuels such as LNG, LPG, methanol, ammonia, and ethanol. The technological journey has not been without its challenges. In October 2024, Everllence withdrew its ME-GA two-stroke, low-pressure Otto cycle, LNG-powered dual-fuel engine, launched in 2019, from the market following reports of performance issues.
The new phase with Bain Capital
With Bain Capital as the majority shareholder, Everllence aims to grow in markets where demand appears to be boomingGlobal shipping remains a mainstay, but the group is increasingly focusing on the energy and data center sectors, which require increasingly efficient infrastructure, power systems, and industrial solutions.
The agreement also provides for safeguards for industrial presence in GermanyThe locations in Augsburg, Oberhausen, Berlin, Hamburg and Ravensburg will be maintained under the new ownership structure at least until the end of 2030. During the same period, excluding compulsory layoffs.
