Thyssenkrupp completes sale of its elevator business
2020-08-03 09:02:51 [Print]
Thyssenkrupp completed the sale of its elevator business for 17.2 billion euros (20.4 billion U.S. dollars) to a bidding consortium led by U.S. and British private equity firms Advent International and Cinven, the German steel giant announced last Friday.
The transaction would result in a "substantial reduction in debt to a net cash position and a significant increase in equity," Thyssenkrupp announced.
In the fiscal year 2018/2019, Thyssenkrupp's elevator business had generated almost 20 percent of total revenues and was by far the company's most profitable business unit, achieving an adjusted earnings before interest and taxes (EBIT) of 907 million euros.
Thyssenkrupp recently recorded losses of 948 million euros for the second quarter (Q2) of 2020. Compared to Q2 of the previous year, losses grew by almost 800 million euros.
"We are continuing to focus all our energies on substantially improving the performance of the remaining businesses," said Martina Merz, chief executive officer (CEO) of Thyssenkrupp. The sale of the elevator business worth billions would provide "tailwind for the transformation of Thyssenkrupp."
The transaction would result in a "substantial reduction in debt to a net cash position and a significant increase in equity," Thyssenkrupp announced.
In the fiscal year 2018/2019, Thyssenkrupp's elevator business had generated almost 20 percent of total revenues and was by far the company's most profitable business unit, achieving an adjusted earnings before interest and taxes (EBIT) of 907 million euros.
Thyssenkrupp recently recorded losses of 948 million euros for the second quarter (Q2) of 2020. Compared to Q2 of the previous year, losses grew by almost 800 million euros.
"We are continuing to focus all our energies on substantially improving the performance of the remaining businesses," said Martina Merz, chief executive officer (CEO) of Thyssenkrupp. The sale of the elevator business worth billions would provide "tailwind for the transformation of Thyssenkrupp."
