Mutares sells EUPEC Germany

Mutares AG (ISIN: DE000A0SMSH2) has sold EUPEC Germany to the Wasco Group for EUR 19.5m. The operating business of EUPEC France remains within the Mutares Group.

EUPEC Germany is a non-operating company that owns a concrete weight coating plant for gas pipelines in Mukran, Germany. Mutares has sold the company for EUR 19.5m to the Malaysian Wasco Group which will utilize the plant for the “Nord Stream 2” project. Through earn-out payments until 2019, the purchase price can rise up to EUR 32m in total.

Robin Laik, CEO of Mutares , comments: “After long negotiations we are glad to have reached a satisfying solution for both sides. We want to make use of our current tailwind to further develop and grow our business to reach our very ambitious targets.”

The operating business of EUPEC France, which generated revenues of EUR 72m and operating earnings of EUR 13m in 2015 by coating oil and gas pipelines, remains a part of the Mutares Group. EUPEC France was hit by the downturn of the oil and gas market in 2016, but expects for 2017 a stabilization in a slightly growing market.