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- Thyssenkrupp (OTCPK:TYEKF), the German industrial conglomerate known for its elevator and escalator business, is preparing to sell down 10-20% of its hydrogen business at a $3-6b valuation.
- The re-branded "Nucera" business unit generated ~$30m in operating profits last year, on ~$320 in sales; a sales figure the company thinks could triple by 2025.
- Importantly, Thyssen's Nucera is an engineering, procurement and construction "EPC" business serving the hydrogen sector; Nucera's customers like Air Products (NYSE:APD) and Shell (NYSE:RDS.A) are the producers of the green fuel.
- As a pure-play EPC, Nucera will compete directly with other heavy-industry contractors like Asahi Kasei (OTCPK:AHKSY), Nel ASA (OTCPK:NLLSF), and ITM Power (OTCPK:ITMPF).
- With plenty of hype around hydrogen, it appears Thyssen is making a smart move to sell down a stake in a hydrogen-levered EPC business for 10-20x sales; particularly given EPC companies like Thyssen, Technip and Saipem generally trade at valuations below 1.0x sales.