Cinven, alongside co-investors, successfully acquired TK Elevator for €17.2 billion, leveraging its strategic expertise and strong stakeholder relationships to enhance growth opportunities and operational efficiencies.

Information on the Target

TK Elevator (TKE) has been under the ownership of thyssenkrupp AG, showcasing critical strengths such as robust technical expertise, significant innovation capabilities, and a strong recurring revenue stream from its service division. Over time, TKE has built a solid reputation, characterized by high customer retention levels, which has positioned the company favorably for growth opportunities. Cinven's DACH and Industrials teams have been tracking TKE for years, establishing strong relationships and an in-depth understanding of the company's operations and market potential.

Since the takeover in 2020, TKE has shown impressive financial growth, with revenues increasing from €7.9 billion to over €9 billion and adjusted EBITDA rising from €1.1 billion to €1.5 billion within four years. The company has focused on implementing a new product strategy and enhancing its service offerings while addressing challenges from the aftermath of the Covid-19 pandemic, ensuring operational resilience and ongoing market competitiveness.

Industry Overview in Germany

The elevator and escalator industry in Germany represents a vital sector within the European Union, emphasizing safety, innovation, and efficiency. This industry is characterized by substantial