The German shipyard sector could be in for a shake-up with American private equity giant Carlyle Group opening discussions to buy into thyssenkrupp’s marine business in a deal valued at $1.6bn with due diligence under way.
At the same time, talks are being held with the German government on the state’s participation in thyssenkrupp’s marine business, best known for its submarine building.
Dr Volkmar Dinstuhl, member of the executive board of thyssenkrupp, said: “The participation of a private equity company is one of several options we are currently investigating for the separation of our marine business. With the active involvement of Carlyle, we are now taking the necessary next step and starting the phase of an open-ended assessment of the relevant business activities.”
With around 7,800 employees, thyssenkrupp Marine Systems has multiple facilities including the largest shipyard in Germany, located in Kiel. The shipyard division has been the subject of multiple takeover stories over the past six years.
Carlyle went into ownership of a US shipping company years ago. That was the Sealand/CSX/Horizon Lines take over.
Though I’m sure many have a different opinion on this (especially since it was a US flag carrier in the Jones Act trades), but that was the beginning of the end for this company. As I’ve been told by many “who were there” in the middle of it all, Carlyle stepped in, sliced and diced everything, sold off all it could to make money, then left a company under so much debt they’d never recover.
And they didn’t.
Hope this plan comes under some scrutiny by those involved in their own interests.