Kirkland, Paul Weiss, Linklaters steer Bain’s €7.4bn VW engine unit buyout

Kirkland, Paul Weiss and Linklaters have landed lead roles on Bain Capital’s purchase of a majority stake in Volkswagen’s industrial engine business Everllence for €7.4 billion, in one of the year’s largest European leveraged buyouts.

The German car manufacturer fielded competitive bids from private equity groups including CVC and EQT before striking a deal with Boston-based Bain. Bain is buying a 51% stake, with VW retaining 49%.

The valuation climbed from around €5 billion in the first round of bids in February, according to the Financial Times, helped by private capital’s appetite for AI-resistant industrial assets and rising demand for ship engines and data centre-linked power turbines.

The sale comes as Volkswagen presses ahead with a sweeping restructuring programme, with the financially pressured carmaker reportedly preparing to cut up to 100,000 jobs.

Advising

Kirkland is advising Bain. The cross-practice team includes Munich corporate partners Benjamin Leyendecker, Philip Goj and Sebastian Heim, alongside partners in debt finance, tax, and technology and IP transactions.

Paul Weiss is advising Bain on the financing for the deal, with a team led by London-based firm vice chair Neel Sachdev and debt finance partners Kanesh Balasubramaniam and Marco Bagnato.

Linklaters advised longtime client Volkswagen. The team was led by Düsseldorf corporate partners Ralph Wollburg, Achim Kirchfeld and Andreas Zenner, and Frankfurt private equity partner Andreas Müller, supported by partners across antitrust, private capital, disputes, tax, banking and employment.

German firm Gleiss Lutz is advising Volkswagen’s supervisory board.