Exclusive: TK Elevator owners weigh US for potential multi-billion euros IPO, sources say

Reuters

17-04-2025

Summary
Companies
Deliberations at an early stage, sources say
Business likely to be valued at more than 20 billion euros
FRANKFURT, April 17 (Reuters) - TK Elevator's owners are weighing the United States as a location for a potential initial public offering next year, despite market turmoil triggered by U.S. tariffs slowing the pace of dealmaking, three people with knowledge of the matter told Reuters.
Deliberations are at an early stage and preparations are expected to be formalised towards the end of 2025, with a view to conducting a sale or listing of the company next year, the people said, speaking on condition of anonymity because the matter is private.
The business is likely to be valued at more than 20 billion euros ($22.7 billion) in a transaction, the people said, adding there was no certainty of a deal and that the timing could still change depending on market developments.
The United States is TK Elevator's biggest market and home to sector-leader Otis, which commands the highest multiple among peers, making it one of the reasons why it is being considered as an IPO location, one of the people said.
Thyssenkrupp (TKAG.DE), opens new tab in 2020 sold its elevator technology business - later renamed TK Elevator - for 17.2 billion euros to a consortium of bidders led by private equity firms Advent, Cinven and Germany's RAG foundation.
Advent, Cinven (CINV.UL) and RAG all declined to comment.
TK Elevator was not immediately available for comment.
European companies choosing the U.S. as a listing venue in the hope of higher valuations compared with their home countries has become a hotly debated topic, also highlighted by recent moves by Switzerland's Holcim (HOLN.S), opens new tab and Belgium's Titan Cement International (TITC.BR), opens new tab.
FOURTH LARGEST
Countries like Britain, too, have embarked on market reforms to attract more listings and the London Stock Exchange has looked to dissuade companies from choosing the U.S.
TK Elevator is the world's fourth-largest elevator maker by sales behind U.S.-based Otis (OTIS.N), opens new tab, Switzerland's Schindler and Finland's Kone (KNEBV.HE), opens new tab, which trade at an average EV/EBITDA multiple of 14.8 according to LSEG data.
Based on adjusted EBITDA of 1.5 billion euros in the 2023/24 fiscal year, this ratio would give TK Elevator a valuation of more than 22 billion euros.
Since the 2020/2021 fiscal year, TK Elevator has increased sales by more than 16% and its adjusted EBITDA by more than a third, for an operating margin of around 16%, boosted by strong global demand and its stable service business.
In February, Saudi tech firm Alat became a direct shareholder in TK Elevator when it bought a 15% stake, as well as launching a 160 million euro joint venture in Saudi Arabia for elevator and escalator solutions.
Thyssenkrupp last year said a minority stake that it still holds in the elevator business has a book value of 1 billion euros, adding it was flexible regarding its options which largely depended on what TK Elevator's majority owners would do.
($1 = 0.8801 euros)