Danfoss sells majority of automotive power module business to Fidelium
Munich-based investment firm Fidelium Partners has agreed to become majority owner of Danfoss’s automotive power module business, which will be spun out into a new joint venture with Danfoss. Around 600 employees and the production sites in Flensburg and Nuremberg, Germany, will move to the joint venture.
The business is currently a division under the Semikron Danfoss brand within Danfoss Power Electronics, and makes power modules for electric passenger cars, according to a press release from Danfoss. Danfoss announced earlier that it was looking for a new owner, as part of its portfolio management, saying the business needed a different setup to scale significantly.
Fidelium specialises in corporate carve-outs and businesses with potential for operational improvement, and has invested in the automotive sector before. It manages two funds with total assets of EUR 253 million, backed by German entrepreneurial families.
“The business has built an outstanding technology position in power modules for electric mobility, backed by a highly skilled team and strong partnerships with its stakeholders,” says David Burresi, Investment Director at Fidelium Partners.
The deal is subject to regulatory approval and is expected to close by the end of 2026. Neither company discloses the purchase price or how ownership of the joint venture will be split.
