Volkswagen sells majority of engine builder Everllence to Bain Capital for €7.4 billion
The German automaker is handing over 51 percent of its large-engine subsidiary to the US investor, keeping 49 percent, while securing German jobs until 2030.
The deal
Volkswagen has chosen US private equity firm Bain Capital as the buyer of a 51 percent stake in its subsidiary Everllence, a manufacturer of large engines, turbomachinery, and decarbonisation solutions formerly known as MAN Energy Solutions. The Wolfsburg-based group announced the exclusive agreement early on 25 June, with the transaction valued at around 7.4 billion euros. VW will retain 49 percent and aims to close the sale by the end of 2026, pending regulatory approvals and a mandatory consultation with employee representatives in France.
We have restructured and strengthened the company after acquiring it in 2018. Now is the right time to take the next step and hand the majority over to a strong partner.
Strategic shift
CEO Oliver Blume framed the sale as part of a broader effort to concentrate on Volkswagen’s core automotive business. The disposal comes as the group reviews all its more than 1,500 subsidiaries with the goal of reducing complexity and administrative overhead. Internally, the move is seen as the possible start of a large-scale streamlining. The proceeds arrive at a welcome moment for VW, which is battling a downturn in China and US tariffs imposed by President Donald Trump. Blume is expected to present a far-reaching restructuring plan to the supervisory board before the summer break, including a further capacity reduction of 500,000 vehicles annually in Germany by 2030.
Through slimmer structures Everllence gets the chance for further growth, and at the same time Volkswagen can concentrate even more on our core business.
Competition and conflicts
Bain prevailed in a weeks-long bidding contest against rival investors CVC and a consortium led by Swedish firm EQT. That consortium included the Qatari sovereign wealth fund, Singapore’s state fund, and Porsche SE, the holding company of the Porsche and Piëch families that control Volkswagen. The close ties of the families and Qatar to VW’s supervisory board raised concerns about conflicts of interest; board representatives linked to the bidders reportedly recused themselves from the deliberations.
VW shareholders could benefit from the transaction in several ways: first through the strengthened substance of Volkswagen, and second through participation in the future value and growth potential of Everllence.
Employment safeguards
Volkswagen secured commitments that Everllence’s five German locations, in Augsburg, Oberhausen, Berlin, Hamburg and Ravensburg, will be maintained until at least the end of 2030. Operational layoffs are ruled out during that period. The company employs more than 16,000 people worldwide and generated revenue of 4.9 billion euros last year.
Financial snapshot
- VW book value (May 2026)
- 3.4 billion EUR
- Insider estimate (recent)
- 8.5 billion EUR
What comes next
The deal requires regulatory clearances and is scheduled to close by the end of the year. VW Finance Chief Arno Antlitz said the board will decide later how to use the cash. Bain Capital has agreed to preserve German jobs through 2030, while Everllence is expected to pursue growth in shipping, data centres, and the energy sector.
- Volkswagen announces exclusive agreement with Bain Capital to sell 51% of Everllence for €7.4 billion
- Expected closing of the transaction, subject to regulatory approvals and French worker consultation
