Report: Private Equity Bids Lining Up for Marine Engine Company Everllence
Private equity buyers are reportedly showing a strong interest in Everllence (formerly MAN Energy Solutions), according to a report in the Financial Times. The newspaper broke the news last fall that parent company Volkswagen was working on a carve-out to sell a large portion of the company, best known for its engines that power large ships.
Top private equity funds, including Blackstone, EQT, and CVC, have submitted bids in the first round, according to a report in the Financial Times. It notes that buyout firm CD&R and industrial carve-out specialists KPS have also shown interest, as well as potentially some of Everllence’s competitors.
Dow Jones added to the speculation that engine and machinery company Yanmar was also interested in the process. It also reports that Porsche, the controlling shareholder of Volkswagen, was considering a bid for Everllence.
The Financial Times reported in 2025 that Volkswagen, which was pressured by investors to improve its financial performance, had retained Goldman Sachs and JP Morgan Chase to explore the possible carveout of Everllence. There was initial speculation that they were seeking as much as $7.7 billion for a controlling interest in the engine company while Volkswagen would retain a large minority position. Recent reports believe the valuation of the bids is ranging between $5.9 and $7.1 billion, with the first round having closed last week.
As part of the process, reports indicate they are also looking to refinance the company. A lender education process was reported to have been recently launched to attract banks that could provide financing for the acquisition and future working capital for Everllence.
The business, which traces its origins to 1758 and grew as Maschinenfabrik Augsburg-Nürnberg (MAN), was rebranded in June 2025 as Everllence to emphasize its growing focus on decarbonization and efficiency solutions for the “hard-to-abate” sectors. While the company is best known for its engines and turbomachinery, management said the business is also a supplier of large heat pumps, carbon capture and storage technology, and a player in the ramp-up of hydrogen solutions. It also highlighted that, in addition to developing marine and power-plant engines, it was also a provider of retrofit solutions and increasingly addressing the need to reduce CO2 emissions with climate-neutral fuels.
Management highlighted the growing focus on becoming a leading provider of decarbonization solutions. It said those products were expected to account for at least half of the company’s revenues by 2030, up from 15 percent of its incoming orders in 2024, which were already attributable to green tech.
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Volkswagen mapped its strategy in late 2024 to address the calls for increased profitability. It said it would be streamlining operations in response to the growing pressure from Chinese competition. The company has also invested heavily in battery technology and electric vehicles, while analysts note a slower-than-expected uptake of electric vehicles in Europe. The export business is also being impacted by steep international tariffs, according to Dow Jones.
No timeline was discussed for the potential sale or the likely next steps. The deal is in the financial markets at the same time as Continental is also working to carve off portions of its business to focus on its tire sales. Analysts note it is rare to have two multibillion-dollar carve-outs in the market at the same time, competing for investor attention.