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Mutares Bolsters Ferral United Group With Acquisition of German Firms

Published 2023-10-16, 09:56 a/m
© Reuters.

Mutares (ETR:MUXG) SE & Co. KGaA, the mid-sized European company acquirer, has finalized its purchase of Gesenkschmiede Schneider, Schöneweiss & Co., and Falkenroth Umformtechnik from CIE Forging Germany, a division of CIE Automotive S.A., on Monday. These German firms specialize in forging and machining for the truck market, generating nearly EUR 220 million in revenues and employing around 600 people.

The acquisition is geared towards strengthening FerrAl United Group's multi-material machined solutions offering. This group is part of Mutares' portfolio. The integration of these companies is expected to foster synergies in customer relationships and production machinery capabilities, especially concerning forging and friction welding.

The backing from Mutares will give these firms access to new technologies and expertise. It is anticipated that improvements in procurement processes and the realization of cross-selling potentials will contribute to enhancing competitiveness.

Mutares, with its extensive European presence and offices in multiple cities including Munich (HQ), Amsterdam, Frankfurt, Helsinki, London, Madrid, Milan, Paris, Shanghai, Stockholm, Vienna, and Warsaw, is known for acquiring mid-sized European companies showing significant operational improvement potential. The firm typically focuses on repositioning and stabilization before resale.

For the fiscal year 2023, Mutares projects revenues between EUR 4.8 billion to EUR 5.4 billion. The company aims for consolidated revenues of approximately EUR 7 billion by 2025 and EUR 10 billion by 2028. The Management Board and Supervisory Board hold over one-third of voting rights shares.

Traded on the Frankfurt Stock Exchange, Mutares anticipates a net income of EUR 125 million to EUR 150 million for fiscal year 2025 and EUR 200 million for fiscal year 2028. Portfolio growth increases consulting revenues, with portfolio dividends and exit proceeds accruing to Mutares Holding.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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