In a move that has major implications for marine propulsion, Volkswagen Group has agreed to sell a 51% stake in Everllence to private equity firm Bain Capital.

Structured as a leveraged buy-out, the deal is expected to generate proceeds of about €7.4Bn (US$8.4Bn), with Volkswagen remaining a major investor, retaining a 49% stake. Completion of the transaction is subject to regulatory approvals and a consultation process in France.

Everllence, formerly known as MAN Energy Solutions, is a leading developer and designer of large-bore two- and four-stroke marine engines, turbomachinery, and decarbonisation solutions serving shipping, energy, and industrial sectors. With revenues of €4.9Bn (US$5.7Bn) and approximately 16,000 employees, the company has built a leadership position in the development of dual-fuel engine technology for shipping. Just this month, Everllence reported a successful Type Approval Test (TAT) of its ME-LGIA ammonia-burning engine at its Research Centre Copenhagen, advancing the two-stroke, slow-speed prime mover towards its commercial market debut later this year.

The timing of the divestment aligns with a sea change in marine propulsion. Engine makers are experiencing sustained demand linked to fleet renewal, tightening emissions regulations, and investment in alternative fuels. Owners are increasingly specifying dual-fuel engines and retrofit packages for existing engines, while demand for energy efficiency upgrades remains strong across existing tonnage. This requires sustained investment in R&D.

“Bain Capital’s financial strength, strategic expertise, and global network are expected to strengthen our position to drive innovation, scale up cutting-edge technology, and tap into new markets,” said Everllence chief executive, Uwe Lauber.

With its majority stake, the Boston-based private equity firm is expected to boost investment in marine engine development, propulsion technologies, and decarbonisation solutions, enabling Everllence to continue R&D efforts into supporting the shift to low- and zero-carbon fuel technologies.

Everllence said, safeguards for the company’s German sites have been agreed: the sites in Augsburg, Oberhausen, Berlin, Hamburg, and Ravensburg will be retained under the new ownership structure at least until the end of 2030. Compulsory redundancies are ruled out during this period.