Volkswagen has agreed to sell a 51% stake in its industrial engine subsidiary, Everllence, to U.S. private equity firm Bain Capital. The transaction will generate approximately €7.4 billion ($8.4 billion) in proceeds for the automaker. Volkswagen will retain a 49% ownership stake in the business.
The divestment aims to streamline operations and raise capital for a costly transition to electric vehicles. Everllence, formerly known as MAN Energy Solutions, specializes in large-scale marine engines and power plant turbines.
The deal marks one of Europe’s largest industrial carve-outs this year. A competing bid from a consortium involving Porsche SE was excluded from the final decision to prevent a conflict of interest.