Volkswagen ponders over the prospect of acquiring Everllence
Volkswagen Group is exploring strategic options for Everllence, the subsidiary that specializes in solutions for decarbonizing industry. The potential sale of Everllence, which was initially part of the MAN Group, has been a topic of speculation for some time.
The acquisition of H-Tec Systems in 2021 was intended to expand Everllence's production of electrolysers for the hydrogen economy. However, the hydrogen economy has seen sluggish development so far. Despite this, Everllence recently recorded record orders, indicating a growing interest in its products.
Volkswagen has commissioned investment banks Goldman Sachs and JPMorgan to explore potential buyers for Everllence. Financial investors are the most likely candidates for the potential buyers of Everllence. If Everllence achieves certain return targets, the guarantee for keeping it in the group could be extended until 2026.
The commitment to keep Everllence in the group until at least 2024 is part of an agreement with IG Metall and the works council. Volkswagen had guaranteed to keep Everllence in the group until at least the end of 2024 as part of a cost-cutting program.
However, a spokesperson stated that they are reviewing strategic options for Everllence, suggesting a potential change in the company's future within the Volkswagen Group. Marco Nagler, foundry manager of the affiliated traditional foundry in Augsburg, discussed the future of Everllence at the Volkswagen Group, but at the time of the interview, it was not yet an option.
Everllence, formerly MAN Energy Solutions, now specializes in large heat pumps, CO2 capture and storage, and the conversion of marine engines to climate-friendly fuels. The truck and bus division was absorbed into the Traton Group, while Renk has already been successfully floated on the stock exchange.
For more insights into the transformation and future of Everllence, you can read Marco Nagler's interview at www.our website/de/d/everllence-se-transformation-and-future-of-the-foundry-in-augsburg/.
The aim is to generate proceeds of more than five billion euros from the sale of Everllence. Volkswagen has not officially commented on the matter, but the potential sale of Everllence could mark a significant step in the Group's strategic repositioning.
