Mutares forms its subsidiary Donges SteelTec into a new platform with first add-on acquisition

The Donges SteelTec Group, a subsidiary of the Mutares Group (ISIN: DE000A0SMSH2), signs an agreement to acquire the Kalzip Group, a supplier of cladding solutions and aluminium roofing, from Tata Steel.<p>

  • Donges sales to increase to more than EUR 100 million
  • Complementation of the product range and engineering Know-how
  • Opening up new geographical markets in the building construction sector
  • Operational synergy potential through new Donges SteelTec platform

Munich, 26 July 2018 – Donges SteelTec (“Donges”), a subsidiary of German Mutares Group (ISIN: DE000A0SMSH2), has signed an agreement to acquire the Kalzip Group (“Kalzip”). Kalzip was previously integrated into the Building Envelope division of the European operations of Tata Steel and was sold as part of Tata Steel’s focus on its core business. Thanks to the complementary product portfolio of Donges and Kalzip, a global supplier of integrated steel and aluminium solutions is to be created. The closing of the transaction is subject to regulatory approval and expected to be closed end of September 2018. For Mutares, this acquisition is already the third transaction in the current financial year.

With Kalzip, Donges, one of Germany’s leading suppliers of steel structures, has acquired the roof and facade systems business of Tata Steel. Donges headquartered in Darmstadt, Germany, is currently active in German-speaking countries. The transaction will increase the Group turnover to more than EUR 100 million.

Kalzip is a global supplier of aluminium building envelopes, producing roof and facade systems on modern roll-forming lines. It offers high-quality aluminium solutions, especially for stadiums, sports halls, traffic structures, industrial buildings, commercial buildings and residential quarters. Kalzip maintains a worldwide sales network and, in addition to its headquarters in Koblenz, major subsidiaries in England, Dubai and India. In 2017, the company generated worldwide sales of around EUR 62 million with around 230 employees.

Within the newly created Donges Group, the combination of steel and facade construction enables a complementary knowledge transfer of both technology areas and the positioning as a full-service solution provider. The complementation of the product portfolio and improved market access directly to clients and architects are expected to contribute to an increase in competitiveness.

Donges has been part of the Mutares Group since November 2017 and is now focusing on the structural realignment of key business areas. The acquisition of Kalzip marks the first add-on for Donges and thus the first milestone in the further strategic realignment of the company.

Johannes Laumann, Managing Director of Donges SteelTec: “We are very pleased about the acquisition of Kalzip. Thanks to the complementary product portfolio, Donges and Kalzip are an excellent strategic fit. In particular, the use of joint sales activities offers potential for significant sales growth. In addition, we can offer our customers significant added value as a one-stop provider of integrated solutions for steel and facade construction for roofs and walls. “

Following the acquisition of Kalzip, Donges SteelTec will from now on be managed as an independent platform investment in the Engineering & Technology division in the Mutares portfolio.