Triton Partners explores sale or IPO of Trench Group amid AI demand - Bloomberg

Triton Partners is exploring a potential listing or sale of Trench Group, a power transmission component maker, according to Bloomberg, citing people familiar with the matter. The European buyout firm has hired Morgan Stanley (NYSE:MS) to advise on a dual track process for the Berlin-based company.

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. Interest has surged in German companies involved in the artificial intelligence buildout.

Deliberations remain at an early stage, and there is no certainty that Triton will proceed with a transaction, the people said. Triton moved to buy the maker of bushings, instrument transformers and coil products from Siemens Energy AG (ETR:ENR) in 2023.

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.

The dual track process allows Triton to pursue both a stock market listing and a private sale simultaneously. Morgan Stanley will advise on both options for the power transmission component manufacturer.