Blackstone, EQT and CVC have submitted first-round bids for Volkswagen's Everllence division in a €5-6 billion carve-out. The former MAN Energy Solutions unit manufactures shipping engines and heat pumps, with Volkswagen expected to retain a significant minority stake. Other interested parties include CD&R and KPS, while certain corporate buyers have also explored bids.

Volkswagen accelerates portfolio reshaping amid weaker automotive demand and rising competition from Chinese manufacturers. The carmaker reported €6bn in net cash flow from its automotive division in 2025, beating expectations through cost reduction measures. This sale occurs alongside Continental's ContiTech divestment, creating a rare dual-process situation in German industrial carve-outs.

The parallel sales reflect broader structural pressure across Europe's industrial sector. Companies streamline portfolios to manage volatile energy costs, environmental regulation and Chinese imports, while PE firms seek to enhance performance through operational restructuring. With nearly €60bn of European private equity carve-outs completed last year, the Everllence auction stands as one of the region's most closely watched industrial transactions.