thyssenkrupp sells its Elevator Technology business entirely to a consortium led by Advent,
The respective Executive Board decision was approved on Thursday evening by the Supervisory Board of
The sale of Elevator is a favorable solution not only for the company, its shareholders, customers and employees, but also for the elevator business itself. In the consortium, thyssenkrupp has found new owners for the elevator business who have extensive industrial expertise and offer the workforce a high degree of security. The buyers have a strong track record in profitably growing and nurturing companies to become global champions.
In negotiations with employee representatives and the IG Metall trade union, the buyers have committed to far-reaching site and employment guarantees. In addition, it was agreed that the buyers will continue to manage thyssenkrupp Elevator as a global group. The company will also remain based in
'We are not pleased to part with our employees and the elevator business. Nevertheless, today is a good day for everyone involved. With this step, we are opening up real prospects for the future: for the elevator business as an independent company and, with the financial solidity we have gained, also for all other areas of thyssenkrupp,'
Transaction strengthens thyssenkrupp's equity base
thyssenkrupp aims to use the cash inflow to the extent necessary to cut debt and to lower structural costs. Specifically, the company's pension obligations are to be partially funded. For this purpose, funds shall be brought under a legally independent trust. It is planned that alongside cash the reinvestment in the elevator business will be transferred to the trust so that it can participate in the expected value uplift of the business. Furthermore, thyssenkrupp plans to use a part of the proceeds to reduce financial debt significantly. As a result, annual cash outflow for interest and pension payments are expected to be significantly reduced. Thus, the company's structural costs could be considerably lowered. This would largely compensate for the future loss of positive cash contributions from the elevator business.
Upon closing of the transaction,
Rapid implementation of Group restructuring targeted
With its regained financial solidity, thyssenkrupp will have greater scope to implement its transformation. The primary goal is rapid and substantial improvement in the performance of the businesses ('performance first'). The necessary measures are by large extent already identified and are currently being implemented.
In addition, thyssenkrupp has announced that it will draw up specific plans for the further development of the various businesses and present them to the Supervisory Board in May. On this basis, thyssenkrupp then intends to make portfolio decisions such as which businesses it will continue to develop on its own, which are more likely to attain a leading position in an alliance and which would develop better under new ownership. thyssenkrupp will thus be in a position to consequently move forward with the implementation of the measures and the restructuring of the company once payment of the purchase price has been received.
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