Triton Partners Is the Frontrunner to Buy VW’s Gearbox Maker Renk
Triton Partners Is the Frontrunner to Buy VW’s Gearbox Maker Renk
(Bloomberg) -- Triton Partners is emerging as the frontrunner to acquire Volkswagen AG’s industrial machinery unit Renk AG, people familiar with the matter said.
The Europe-focused private equity firm submitted a slightly higher offer than its main rival in the bidding, Swedish investment firm EQT AB, according to the people. A decision on a winner could come as soon as this week, the people said, asking not to be identified because the information is private.
Triton has committed to wide-ranging job guarantees at Renk until 2026, the people said. A deal still needs to be approved by Volkswagen’s management board, according to the people.
VW owns 76% of Renk, which makes transmissions for large machines from ships to military vehicles, as well as pumps, compressors and gearboxes for the oil and gas industry. Renk shares have risen 15% in German trading over the past year, giving the company a market value of 742 million euros ($817 million).
Company Overhaul
A deal would mark the first major divestment by the world’s largest automaker since 2015, when VW sold car-financing company LeasePlan Corp. The German manufacturer has been reviewing non-core businesses after the diesel-emissions scandal prompted VW to streamline its structure after a decade of rapid expansion.
No final agreements have reached, and talks could still break down, the people said. A representative for VW said the company doesn’t comment on market speculation. Representatives for Triton and EQT also declined to comment.
VW Chief Executive Officer Herbert Diess last year listed VW’s heavy-trucks division Traton SE. He’s been considering a deeper overhaul that’s aimed at more than doubling the company’s market value to 200 billion euros.
Some attempts to slim VW down have stumbled. A plan to sell the Ducati motorcycle brand in 2017 was derailed amid persistent opposition from key stakeholders. VW has also been holding talks on a potential sale of its MAN Energy Solutions division, though it’s been disappointed with the offers it received so far, Bloomberg News reported this month.
--With assistance from Jan-Henrik Förster and Aaron Kirchfeld.
To contact the reporters on this story: Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Christoph Rauwald in Frankfurt at crauwald@bloomberg.net
To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Ben Scent
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