Thyssenkrupp and Carlyle in talks

Thyssenkrupp Marine Systems products include its HDW non-nuclear submarines and a portfolio of naval surface vessels that includes the F125 frigate. [Image:TKMS]

U.S. global investment firm Carlyle is evaluating cooperating with German industrial giant Thyssenkrupp AG on the planned separation of its marine business, Thyssenkrupp Marine Systems, whose Kiel site is Germany’s largest shipyard. Both companies agreed to enter into an in-depth examination and valuation (due diligence) of the business with a view to a possible partial sale of Thyssenkrupp Marine Systems (TKMS) to Carlyle.

Thyssenkrupp Marine Systems products include its HDW non-nuclear submarines and a portfolio of naval surface vessels that includes the F125 frigate. Other TKMS businesses include Atlas Elektronik.

“The participation of a private equity company is one of several options we are currently investigating for the separation of our marine business,” said Dr. Volkmar Dinstuhl, a member of the Executive Board of Thyssenkrupp AG. “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.”

Thyssenkrupp says that he involvement of Carlyle does not rule out the parallel examination of further separation options on the capital market. It says that, in addition to its discussions with Carlyle, “at the same time, talks are being held with the German government on the state’s participation in Thyssenkrupp’s marine business.”

Last year, says the company, its supervisory board gave the green light for the planned separation of the marine business. Since then, various options have been examined.

“The growing global demand for submarines, naval vessels and surface and underwater technology is creating additional growth opportunities for Thyssenkrupp Marine Systems.” says the company. The independent positioning of the division should enable these opportunities to be better exploited.

“This independence would also provide a good starting point for possible national and European consolidation,” says the company. “Thyssenkrupp Marine Systems is currently the only company in Europe that combines both underwater and surface shipbuilding with the necessary electronics expertise under one roof.”