Triton is exploring a sale or initial public offering of industrial machinery maker Renk AG, people familiar with the matter said.
(Bloomberg) — Triton is exploring a sale or initial public offering of industrial machinery maker Renk AG, people familiar with the matter said.
The private equity firm has been speaking with potential advisers as it weighs its options for the Augsburg, Germany-based business, the people said, asking not to be identified discussing confidential information. Triton could seek a potential value of as much as €3 billion ($3.2 billion) for Renk in any deal, one of the people said.
Renk, which among other things makes automatic transmissions and gear units for military vehicles, has seen demand for its products from defense customers rise since Russia’s invasion of Ukraine a year ago.
Deliberations are in the early stages and no final decisions on the size or timing of any sale or IPO have been taken, according to the people. A representative for Triton declined to comment, while a representative for Renk didn’t immediately provide comment.
Triton bought a 76% stake in Renk in 2020 from Volkswagen AG, the German carmaker that was at the time divesting assets in the wake of a diesel-emissions scandal. Renk, which also makes pumps, compressors and gearboxes for the oil and gas industry, had a market value of about €750 million when the deal was agreed.
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