Strong M&A activities gave Mutares a powerful start into 2022
- Two new platform acquisitions signed in the Engineering & Technology segment
- One add-on-acquisition to strengthen the Automotive & Mobility segment
- Evaluation of highly lucrative exit potential of Donges Group
Munich, 24 March 2022 – Mutares SE & Co. KGaA (ISIN: DE000A2NB650) has started into the year 2022 with already three acquisitions and thus signalling a continued strong M&A activity. With Vallourec Bearing Tubes, in France, and ATI’s Sheffield Operations, in the UK, Mutares will strengthen its Engineering & Technology segment with two new platform acquisitions. Vallourec Bearing Tubes is a manufacturer of seamless high precision steel tubes and generates approx. EUR 50 million in revenues. ATI Sheffield is a supplier of forged and machined products and expects revenues of approx. EUR 80 million for 2022. Both transactions are expected to close by the end of the second quarter of 2022.
Additionally, Mutares has signed the acquisition of Sealynx International and its subsidiaries, in France from GMD Group. The company manufacturers rubber and thermoplastic sealing solutions for passenger cars and commercial vehicles and will create significant topline and cost synergies for the SFC Solutions Group. As add-on acquisition for the SFC Solutions Group, the company will create an important player for automotive sealings in Europe, serving a complementary customer base with a broad product range. Its industrial footprint will be a key lever to the competitiveness of the SFC Solutions Groups. Furthermore, the combined companies will also create high synergies with the LMS Group and its portfolio. The closing of the transaction is expected in the second quarter of 2022.
Due to the still unpredictable situation in Ukraine, Mutares restrained its activities on the exit side for the time being. However, Mutares continues to review the exit potential of its portfolio, especially for the Donges Group, one of Europe’s leading full-range suppliers of steel bridges, steel structures and roof and facade systems, including a potential initial public offering of the Donges Group or parts of it. A final decision has not yet been made and will be subject to market and other conditions. The Donges Group has been part of the Mutares Group since November 2017 and includes the brands Donges SteelTec, FDT, Kalzip, Nordec and Permasteelisa España. As the review is conducted, the Donges Group remains focused on executing its strategy of profitability and growth.
Overall, the transaction pipeline of Mutares is extremely strong and promising. The Mutares team is currently working on over 40 projects with a combined revenue volume of more than twice our current Group revenues. The dominating industries of the projects looked at are the Automotive & Mobility segment as well as the Engineering & Technology segment. Mutares sees the upcoming months as a very strong transaction time and can certainly confirm the official guidance of EUR 5 billion in revenues by 2023 as well as the unofficial target of having one transaction per month. Despite difficult political and social situations the business is robust and opportunities arise out of trust and track record.
“The strength of our pipeline and our execution power in the M&A team makes me confident that there is a lot more to come this year to accelerate our growth story even more and beyond expectations, also when it comes to exits. I expect 2022 to be the next record year in terms of growth and profitability in Mutares history,” comments Johannes Laumann, CIO of Mutares.