Mutares AG (MUX); announces an add-on acquisition to Donges Group

Published on 19-07-2019 09:54:00
Author Michal Mordel

Today Mutares announced it has agreed to acquire Ruukki Building Systems (Ruukki), a supplier of building system solutions in Northern and Eastern Europe. The transaction is subject to regulatory approvals and Mutares anticipates it will close in Q419 or Q120.

Rukki offers heavy steel structures and bridges as well as other types of steel and concrete frame structures. The company has four production sites in Finland, Poland and Lithuania and employs c. 500 people. For 2019, Ruukki expects its sales will be around €130m and it will achieve significant profitability. The company is a subsidiary of SSAB Group, a Nordic and US-based steel company listed on Nasdaq Stockholm.

This is the seventh transaction Mutares has announced in 2019. Mutares highlights Ruukki complements Donges (strategic platform investment in the Engineering & Technology portfolio segment) with engineering and production know-how in Eastern Europe. Company also underlines that the acquisition will help realize synergies within the group. Moreover, Mutares adds that, together with Normek acquired in February 2019, the two add-ons will strengthen Donges’ positioning in the Nordic markets. Mutares expects Donges Group will generate more than €400m annualized sales and have over 1,400 employees upon completion of Ruukki acquisition.

We appreciate the dynamic development of Mutares’ portfolio, which is already ahead of its initial guidance in terms of number of transactions. The acquisition represents a continuation of the portfolio alignment process, where the company deconsolidated unpromising entities and decided to focus on its core competencies.

Author: Michal Mordel

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