Mutares announced today it has acquired a 100% stake in Kirchhoff GmbH & Co. KG. (KICO) as a platform investment. KICO is an automotive supplier that generated sales of €100m and a slightly positive operating result in FY18.
The company manufactures locking and mechatronic systems, hinges and fasteners. It has 800 employees at its production plants in Germany and Poland, as well as a logistics site in Mexico. Mutares highlights KICO delivers its products to some of the world’s largest Original Equipment Manufacturers (OEMs) and Tier 1 suppliers. In 2019, the company will start production of active aerodynamic systems that are used in electric cars.
KICO will join Mutares’ automotive portfolio that consists of STS Group, Elastomer Solutions and Plati (acquired as an add-on to Elastomer Solutions earlier this year). This is the sixth transaction Mutares conducted in 2019 and the third platform investment. The acquisition follows two platform investments the company carried out in its goods & services segment, including keeper (one of the largest European suppliers of plastic household products) and ArcelorMittal TrefilUnion SAS (a producer of wires and steel ropes with two plants located in France).
FY19 add-on investments included Plati in automotive & mobility segment and two transactions in engineering & technology segment (Normek and FDT). The latter two expanded Donges Group (steel construction and roofing provider) and were completed in Q119.
Mutares estimates the six acquisitions it completed this year will increase its annualized sales by almost €400m, compared to FY18 sales of €865m and Mutares’ FY19 guidance of over €1bn. The company confirmed its outlook for 2019 but now guides to a larger number of transactions as it already exceeded Mutares’ forecast. The transactions follow the company’s portfolio alignment process, which involved deconsolidation of unpromising entities and the decision to focus on the Mutares’ core competencies.