ThyssenKrupp AG kicked off the sale process for its prized elevators business, informing potential bidders, including seven private equity firms, that it is open to both minority and majority offers, Bloomberg News and Reuters reported Sept. 4, citing people familiar with the matter.
ThyssenKrupp may open a data room for potential suitors this month, with letters asking for expressions of interest sent to rivals KONE Oyj, Schindler Holding AG, Otis Elevator Co. and Hitachi Ltd., as well as private equity firms Advent International GmbH, Bain Capital LP, CVC Capital Partners Finance Ltd., KKR & Co. EQT, Blackstone Group Inc., Partners Group Holding AG and Apollo Global Management LLC, the reports said.
One of Reuters' sources said thyssenKrupp wants to sign a deal by year-end that would allow it to keep a stake of over 25% in the elevators unit, its most profitable business.
Bloomberg News reported that apart from the size of the offer, thyssenKrupp will also consider potential regulatory hurdle that may arise during the completion process. In June, the European Commission blocked the company's proposed European steel joint venture with Tata Steel Ltd. due to competition concerns.
Despite the planned sale, the company is still looking to list a partial stake in the elevators unit in 2020, with proceeds from the IPO to be used to improve its financial position and finance restructuring plans.
ThyssenKrupp slashed its adjusted EBIT forecast for the 12 months ending Sept. 30 to €800 million from a previous target of €1.1 billion to €1.2 billion.
