Volkswagen has received offers from leading private equity firms, including Blackstone, EQT, and CVC, for its Everllence division, the unit responsible for shipping engines and heat pumps. The initial offer deadline expired last week, with sources estimating the business’s value between €5 billion and €6 billion. Other interested parties reportedly included buyout firm CD&R and industrial carve-out specialist KPS, while some rival companies also explored potential bids.
Volkswagen plans to spin off a majority stake in Everllence while retaining a significant minority holding. The move aligns with VW’s broader strategy to reshape its automotive operations in response to slowing demand and increasing competition from Chinese carmakers. The company reported a net cash flow of €6 billion from its automotive division in 2025, surpassing expectations as it continues cost-cutting measures.
The possible Everllence sale coincides with Continental’s ongoing auction of ContiTech, its belts and hoses business, as the Hannover-based group focuses exclusively on tyres. The overlapping deals have drawn attention from investment bankers, with one describing it as “a very rare situation where you have very similar assets in the same country at the same time.” ContiTech posted an operating profit margin of 4.9 percent in 2025, below its target, but Continental emphasized the unit’s upside potential to investors.
Volkswagen and Continental’s divestment plans reflect a broader European industrial trend, as major groups sell non-core assets to streamline operations amid volatile energy prices, Chinese imports, and rising environmental compliance costs. Private equity firms are increasingly attracted to such carve-outs, seeing opportunities to enhance performance through targeted investment. Data from PitchBook shows that European PE carve-outs reached nearly €60 billion last year, representing 13.5 percent of deal value through early November.
Representatives for Volkswagen, Blackstone, EQT, CVC, CD&R, and KPS declined to comment on the Everllence transaction
