The Volkswagen Group is apparently considering divesting itself of its long-established Augsburg-based subsidiary Everllence. Until a few months ago, the company operated under the name MAN Energy Solutions.
According to the Bloomberg news agency, citing insider sources, VW has commissioned investment banks Goldman Sachs and JPMorgan to explore potential buyers. The Wolfsburg-based group is hoping to generate proceeds of more than five billion euros. Financial investors are the most likely candidates. VW has not officially commented on the matter. A spokesperson simply stated: ‘Volkswagen actively manages its portfolio of investments. We are currently reviewing strategic options for Everllence.’
There has been speculation about a spin-off of the former MAN subsidiary for some time. However, a group commitment still applies: as part of a cost-cutting programme agreed with IG Metall and the works council, Volkswagen had guaranteed to keep Everllence in the group until at least the end of 2024. If the company achieves certain return targets, the guarantee could even be extended until 2026. Everllence has now bottomed out and recently recorded record orders.
The Augsburg-based company now specialises in solutions for decarbonising industry. Its portfolio includes large heat pumps, CO₂ capture and storage, and the conversion of marine engines to climate-friendly fuels. In addition, the acquisition of H-Tec Systems in 2021 was intended to expand the production of electrolysers for the hydrogen economy – an area that has so far seen sluggish development.
Everllence (formerly MAN Energy Solutions) originally moved to VW together with other parts of the former MAN Group. While the truck and bus division was absorbed into the Traton Group, the transmission manufacturer Renk has already been successfully floated on the stock exchange.
In an interview with Marco Nagler, foundry manager of the affiliated traditional foundry in downtown Augsburg www.foundry-planet.com/de/d/ everllence-se-transformation-and-future-of-the-foundry-in-augsburg/ the remaining of Everllence at the Volkswagen Group was a topic of discussion, but at the time of the interview it was obviously not yet an option. We will keep you up to date.
