Published by Global Banking & Finance Review®
Posted on February 27, 2026
3 min readLast updated: April 2, 2026
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Volkswagen has drawn preliminary bids valuing diesel-engine unit Everllence (formerly MAN Energy Solutions) at about €8bn incl. debt—above some sell-side expectations—highlighting strong PE and strategic appetite for “real economy” industrial assets. VW is expected to retain a sizable minority stake
By Andres Gonzalez, Alexander Hübner and Christina Amann
LONDON/MUNICH/BERLIN Feb 27 (Reuters) - Volkswagen <VOWG_p.DE> has received bids valuing its diesel engine division Everllence at around 8 billion euros ($9.4 billion) including debt, according to three people familiar with the discussions.
Such a price tag would be higher than some analysts had predicted. Deutsche Bank analysts said in December in a note that utilising average capital goods multiples, they projected the business' valuation to be in the range of 5 billion euros and 7 billion euros.
Private equity firms including Brookfield, CVC, Blackstone are among those that have submitted bids for the unit that produces shipping engines and heat pumps, as these investors seek industrial businesses unlikely to face disruption from artificial intelligence, two of the sources said.
Volkswagen asked parties to submit bids in mid-February and notified some of them recently that they were advancing to the second round, the sources said.
Volkswagen declined to comment and has said previously the company was reviewing strategic options for the business.
The disposal would rank among the largest carve‑outs by a European company this year, underscoring how major corporates are accelerating efforts to streamline their portfolios. The shift is creating a steady pipeline of non‑core but high‑quality assets for buyout funds to acquire, which are eager to deploy capital amid a rebound in dealmaking.
COMPANY FORMERLY KNOWN AS MAN ENERGY SOLUTIONS
Japanese diesel engine manufacturer Yanmar also submitted a bid, according to a fourth person. Porsche SE, Volkswagen's biggest shareholder, is considering investing in Everllence, the FT reported in October.
The four people spoke on condition of anonymity because the matter is private. One of the sources said binding offers are expected in the next six weeks.
Porsche SE, the holding firm of the Porsche and Piech families declined to comment. Yanmar, Blackstone, CVC and Brookfield also declined to comment.
A possible sale of Everllence, formerly known as MAN Energy Solutions, might permit the German carmaker to sharpen its focus on its core automotive operations while it navigates challenges including steep tariffs, intensifying competition from Chinese manufacturers, and the costly transition to electric vehicles.
VW plans to retain a stake of between 30% and 40% in the business, one of the people said. Volkswagen aims to secure the right partner to drive growth for Everllence, according to the same source.
Bloomberg first reported the news on Friday that bids had been received, and that private equity firms EQT, Bain and Advent were also advanced in the process.
EQT declined to comment while Bain and Advent did not respond to Reuters requests for comment.
($1 = 0.8473 euros)
(Reporting by Andres Gonzalez in London, Alexander Huebner in Munich and Christina Amann in Berlin; Additional reporting by Christopher Steitz; Editing by Anousha Sakoui, Elisa Martinuzzi and Emelia Sithole-Matarise)
Sources said VW has received preliminary bids valuing Everllence at around 8 billion euros ($9.4 billion) including debt.
Private equity firms including Brookfield, CVC and Blackstone submitted bids, and Japanese diesel engine manufacturer Yanmar also submitted a bid, sources said.
Volkswagen asked parties to submit bids in mid-February and has notified some they are advancing to the second round; one source said binding offers are expected in the next six weeks.
The unit produces shipping engines and heat pumps, according to two sources.
One source said VW plans to retain a stake of between 30% and 40% in the business.
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