TK Elevator’s owners are weighing the United States as a location for a potential initial public offering next year, despite market turmoil triggered by U.S. tariffs slowing the pace of dealmaking.

Deliberations are at an early stage and preparations are expected to be formalised towards the end of 2025, with a view to conducting a sale or listing of the company next year, the people said, speaking on condition of anonymity because the matter is private.

The business is likely to be valued at more than 20 billion euros ($22.7 billion) in a transaction, the people said, adding there was no certainty of a deal and that the timing could still change depending on market developments.

The United States accounted for around 35% of TK Elevator’s total sales, which stood at 9.3 billion euros in the 2023/2024 financial year, the company said. The U.S. is also home to sector-leader Otis, which commands the highest multiple among peers, making it one of the reasons why it is being considered as an IPO location, one of the people said.

Thyssenkrupp in 2020 sold its elevator technology business – later renamed TK Elevator – for 17.2 billion euros to a consortium of bidders led by private equity firms Advent, Cinven and Germany’s RAG foundation.

Source: Globalbankingandfinance