Investment company Mutares acquires UK provider of vehicle services from Knorr-Bremse
Munich, 6 August 2018 – German investment group Mutares AG (ISIN: DE000A0SMSH2) is to acquire the UK vehicle service business to train operators from Knorr-Bremse, the leading manufacturer of braking systems. Both companies have signed an agreement to this effect. The closing of this transaction is expected by autumn 2018.
- New platform investment with annual sales of approx. GBP 75 m
- Strategic fit with portfolio segment Engineering & Technology
- First UK transaction for Mutares
- Closing of the transaction expected until autumn 2018
The agreement between Knorr-Bremse and Mutares governs the full takeover of the UK business of Knorr-Bremse RailServices and Kiepe Electric, including both Knorr-Bremse RailServices sites in Wolverton and Springburn as well as the Kiepe Electric facilities in Birmingham.
For Mutares, the acquisition of both UK companies represents the first transaction in Great Britain and the first milestone of its strategy to enter the UK and Scandinavian market. Knorr-Bremse RailServices UK as well as Kiepe Electric UK will be integrated into Mutares’ portfolio as one platform investment in the segment Engineering & Technology. The combined turnover of both companies totalled approx. GBP 75 m. (EUR 85 m) in financial year 2017.
Under a set of commercial collaboration agreements with Knorr-Bremse, the businesses Knorr-Bremse Rail Services UK und Kiepe Electric UK will be the preferred integration and installation partners of Knorr-Bremse. These formal collaboration agreements are designed to ensure a seamless transition period for employees and suppliers and are important for the continuity of delivery to customers and to ensure long term collaboration between Knorr-Bremse and the businesses on future opportunities.
Knorr-Bremse RailServices UK is a provider of a wide range of maintenance and overhaul services to rolling stock owners and train operating companies across the UK and Ireland. Knorr-Bremse RailServices is specialized in vehicle overhaul and refurbishment as well as modernization, upgrading, incident repairs and wheelset overhaul. At its two sites in Wolverton and Springburn, Knorr-Bremse RailServices has about 600 employees.
Kiepe Electric is a globally active supplier of electrical systems to leading rail vehicle and bus manufacturers. In the UK, it operates from Birmingham with approx. 100 employees. The UK company is an engineering consulting firm offering turnkey solutions for refurbishment and modernization for domestic and international rolling stock providers, as well as project management and system integration. Kiepe Electric has been part of Knorr-Bremse since January 2017.
Robin Laik, CEO of Mutares, comments: “The vehicle overhaul segments of Knorr-Bremse RailServices UK and Kiepe Electric UK hold a unique market position in the UK, providing excellent expert services and know-how for the railway industry. Both companies have strong growth potential and are an ideal match for our ongoing operations. We look forward to welcoming the RailServices and Kiepe Electric specialists to our portfolio. Mutares possesses expert knowledge in how to utilize the strong potential of both entities and allow profitable growth in the overhaul of rolling stock for Knorr-Bremse RailServices UK and Kiepe Electric UK.”
Knorr-Bremse is carrying out a strategic realignment of its vehicle services business in the UK market. “With this step, we are continuing our ongoing efforts to realign our strategic focus on core competencies as a key supplier for the railway industry, offering subsystems, components and all related services,” says Klaus Deller, Chairman of the Executive Board of Knorr-Bremse AG and responsible for the Rail Vehicle Systems division. “We are very pleased to have come to an agreement with Mutares – an agreement that will create significant added value for the divested businesses.”