Triton Partners is exploring a potential listing or sale of power transmission component maker Trench Group, according to people familiar with the matter, as interest surges in German companies involved in the artificial intelligence buildout. The European buyout firm has hired Morgan Stanley to advise on a so-called dual track process for Berlin-based Trench, said the people, who asked not to be identified discussing a confidential matter. Triton is targeting a valuation for Trench in the range of several billion euros, with an exit possible as early as next year, the people said.

Deliberations remain at an early stage, and there’s no certainty that Triton will proceed with a transaction, the people said. Representatives for Triton and Morgan Stanley declined to comment. Triton moved to buy the maker of bushings, instrument transformers and coil products from Siemens Energy AG in 2023.

Triton has made a series of deals recently involving German industrial firms, including the purchase of mechanical drive specialist Flender from Carlyle Group Inc. earlier this year and the sale of cooling specialist Fläkt Group in 2025. Trench has over 3,000 employees and operates 11 factories around the world. Last year, the firm agreed to a €585 million ($667 million) refinancing that was aimed at reducing its interest margin and spurring growth.