ThyssenKrupp Elevator AG

History

2020: ThyssenKrupp sells the lift business more than for $17 billion

The huge industrial conglomerate ThyssenKrupp states that it successfully completed sale of the lift business that became one more important milestone in transformation of the company.

The transaction was closed after all responsible bodies approved sale to the consortium headed by Advent International and Cinven.

The consortium headed by Advent International became the buyer

ThyssenKrupp reached the agreement with consortium on purchase of lift business at the beginning of this year. With closing the company received the negotiated price of purchase which as it is reported, was $17.2 billion.

The transaction will lead directly to significant reduction of the relation of a debt to available funds and significant increase in the capital. Thus, group balance sheet indicators considerably will improve.

Part of revenue will be selectively used for development of the directions of business in which it is possible to reach attractive target profit. Besides, means can be used for necessary actions for restructuring.

However in view of the indefinite economic situation caused by a coronavirus, the company will save the greatest possible flexibility in exact distribution of means.

To provide liquidity during crisis with a coronavirus, ThyssenKrupp opened a credit line for €1 billion within the special KfW program (the German national bank). The company did not attract this credit line, and it will end with closing of the transaction with an elevator.

Sale of lift business in which more than 50,000 employees work was the difficult solution which was given hardly for all, but it was necessary for the benefit of all group. Billion income will become a fair wind for conversion of ThyssenKrupp. Closing of the transaction - one more milestone in this process of changes. We continue to direct all our efforts to significant improvement of indicators of other enterprises. We wish our colleagues from Elevator further success and all the best in the future Martina Mertz, CEO of ThyssenKrupp

Completion of the transaction will lead to staff changes among employee representatives in the supervisory board of ThyssenKrupp.

After closing Syuzanna Herberger, the chairman of production council of ThyssenKrupp Elevator, will leave the supervisory board of ThyssenKrupp. It will be replaced by Tekin Nasikkol, the chairman of general production council of ThyssenKrupp Steel Europe.

Sale of lift business - a crucial element of strategic reorganization of ThyssenKrupp begun ​​ last year.

Strategy essence - conversion of ThyssenKrupp to powerful "group" with independent business, a strong umbrella brand, the thrifty holding company and an emphasis on systematic increase in efficiency of all enterprises.