Fidelium Partners becomes majority owner of Automotive Power Module business

Fidelium Partners (Fidelium) has signed an agreement to become the majority owner of a newly formed joint venture with Danfoss for the automotive power module business, currently a business division under the Semikron Danfoss brand within Danfoss Power Electronics, a global engineering and technology leader.

Fidelium is a Munich-based investment firm specializing in corporate carve-outs and businesses with operational improvement potential across Europe. Backed by German entrepreneurial families and its investment team, Fidelium manages two investment funds with total assets under management of EUR 253 million. Fidelium has extensive experience in carving out business units and transforming them into independent, standalone companies and has made several successful investments in the wider automotive sector in the past.

"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. We are delighted to partner with Danfoss, whose continued involvement as a JV partner provides a strong foundation for the firm's future development. Together, we see significant potential to grow the business as an independent company and are excited to support management and the entire team in this next chapter," says David Burresi, Investment Director, Fidelium Partners.

Danfoss previously announced it had initiated a process to find the best future owner for its automotive power module business, a leading provider of power modules for electric passenger cars. As part of Danfoss' active portfolio management, the business was identified as requiring a different setup to significantly scale and unlock its full potential.

"With Fidelium, we have found the right partner for the automotive power module business," says Kim Fausing, President and CEO of Danfoss. "Fidelium has deep experience in the automotive sector, and this expertise will be important for the business to reach its full potential."

The transaction is subject to customary regulatory approvals, with closing expected to take place by December 31, 2026. Danfoss and Fidelium will work closely together to ensure a smooth transition and support continuity for employees, customers, suppliers and other stakeholders.

Approximately 600 employees are part of the automotive power module business and will transfer to the joint venture as part of the transaction. The joint venture will also take over the associated production facilities in Flensburg and Nuremberg, Germany.