Bain Capital is poised to take a majority ownership position in Volkswagen’s marine engine subsidiary, Everllence, according to a source with knowledge of the situation who spoke Wednesday. The investment firm outmaneuvered several other private equity competitors to secure the deal.
The transaction is expected to stand as one of the largest corporate carve-outs in European industry this year. Volkswagen has been working to generate cash as it implements significant cost reductions across its automotive operations.
Bloomberg was the first outlet to report on the pending deal. Sources have previously indicated that Everllence carries a valuation somewhere between €8 billion and €9 billion.
Among the other bidders in the running were CVC and EQT. EQT had teamed up with Porsche SE and Qatar as part of a joint consortium. Porsche SE controls 53.3% of voting rights within Volkswagen, while Qatar holds a 17% stake through its sovereign wealth fund.
Everllence, which was previously known as MAN Energy Solutions, manufactures diesel engines for the global shipping sector. The company also sees an emerging opportunity in artificial intelligence, specifically through growing demand for generators used to power data centers.
A Volkswagen spokesperson declined to offer any comment on the matter, and Bain Capital had not responded to a request for comment at the time of this report.
