German steelmaker ThyssenKrupp has successfully completed the sale of its elevator business and thus achieved another milestone in the company's restructuring launched last year.
All relevant authorities have previously approved the sale to a consortium of bidders Advent International and Cinven. On February 27, 2020 thyssenkrupp agreed with the consortium to transfer the elevator business. After closing, the company received a purchase price of 17.2 billion euros in accordance with this contractual agreement.
“The deal will immediately result in a significant reduction in debt, a net balance sheet and a significant increase in capital ... Part of the proceeds will be used to develop parts of the business where an attractive profit target can be achieved. The funds can also be used for the necessary restructuring measures, ”- said in ThyssenKrupp.
The company recalled that in order to provide liquidity affected by the COVID-19 pandemic, ThyssenKrupp signed a credit line in the amount of 1 billion euros under a special KfW program. This line of credit will be closed after the company receives money from the sale of the elevator business.
Closing the deal will result in a staff turnover among the employee representatives on the ThyssenKrupp Supervisory Board. Following the close of the deal, Susanne Herberger, Chair of the ThyssenKrupp Elevator Works Council, will step down from the Group's Supervisory Board. She will be succeeded by Tekin Nasikkol, representative of the steel division of ThyssenKrupp Steel Europe AG.