Thyssenkrupp is selling its highly profitable elevator business for €17.2 billion to a consortium led by international private equity investors Advent and Cinven and the RAG Foundation.
The elevator business is currently the only significant profit contributor at thyssenkrupp. In the first quarter of the current fiscal year alone, the operational profit amounted to €228 million. thyssenkrupp Elevator has around 53,000 employees worldwide, almost a third of the group’s total workforce.
Thyssenkrupp had initially prepared an initial public offering for the elevator division which is called off with the sale to the financial investors. Competitors such as the Finnish Kone group were also interested. Most recently, the investors Blackstone, Carlyle and Canadian Pension Plan also bid jointly in a bidding race for the elevator business.
Seitz advised the financial consortium around Advent, Cinven and the RAG Foundation in the negotiations on the labour law parameters of the mega deal with IG Metall union and the works councils. The understanding with the employee representatives was an essential prerequisite for the award in the bidding competition. Seitz came into the mandate via a corresponding recommendation by market insiders. Particularly in recent years, Seitz has advised on most of the known major labour law projects in Germany, difficult and complex restructurings and mergers, including the merger of PSA and Opel as well as that of the department store chains Karstadt and Kaufhof.
Source: Handelsblatt, Juve-Rechtsmarkt