For the $9.4 billion Everllence diesel engine division, VW has received initial offers
VW has received offers valuing its Everllence diesel engine division at around $9.4 billion, including debt, according to three people familiar with the discussions.
That price would be higher than some analysts had predicted. Deutsche Bank analysts said in a December note that, using average capital asset multiples. They projected the company’s valuation in the range of €5 billion to €7 billion.
Private equity firms such as Brookfield, CVC, and Blackstone are among those that have submitted bids for the unit, which produces marine engines and heat pumps. As these investors seek industrial businesses that are unlikely to be disrupted by artificial intelligence, according to two of the sources.
Three sources with knowledge of the talks said VW has received proposals that value its Everllence diesel engine subsidiary at about $9.4 billion, including debt.
That cost would exceed the projections of certain analysts. Using average capital asset multiples, Deutsche Bank analysts estimated the company’s value to be between €5 billion and €7 billion in a December report.
The unit, which manufactures heat pumps and marine engines, has received bids from private equity firms like Brookfield, CVC, and Blackstone, which are looking for industrial businesses that are unlikely to be disrupted by artificial intelligence, according to two of the sources.
According to one of the persons, VW intends to keep a 30% to 40% share in the company. According to the same source, Volkswagen wants to find the ideal partner to support Everllence’s expansion.
