Feb 28, 2020 - Economy

Elevator deal is largest European buyout since financial crisis

An elevator closing.

Illustration: Aïda Amer/Axios

Thyssenkrupp of Germany agreed to sell its elevators unit for $18.7 billion to a consortium that includes Advent International, Cinven, ADIA and the RAG Foundation.

Why it matters: This is Europe's largest buyout since before the 2008-2009 financial crisis.

  • Marketplace: The winning price approximated a bid from Finnish strategic Kone, which was hampered by German labor concerns. It was higher than a rival private equity offer from Blackstone, Carlyle and CPPIB.

The bottom line: "Once an emblem of German industrial prowess, Thyssenkrupp is fighting for survival. The company has been bruised by a slowdown in Chinese and German manufacturing, rising pension costs and falling demand for European steel," Bloomberg writes.

Go deeper: Private equity "plague" descends on Germany's elevator industry

Go deeper