Balcke-Dürr – successful turnaround in 2017 with significant growth potential in 2018

Dusseldorf, Germany. Mutares AG’s (ISIN: DE000A0SMSH2) portfolio company Balcke-Dürr produces components to improve energy efficiency and reduce emissions for the energy sector and chemical industry and is part of the Mutares Group since December 2016.

After having accomplished successfully the turnaround milestones in 2017, including the closure of a site and streamlining of production at its central site, the order intake of Balcke-Dürr Group surpasses expectations considerably. Combined with the implemented sustainable structural changes, this development has led to management estimating for 2018 the first positive result for Balcke-Dürr Group since 2012. Due to the shift in strategy and major adjustments in the cost structure Balcke-Dürr expects stable growth in 2018, both organically as well as through acquisitions.

The first add-on transaction has already been completed in November 2017 when Donges SteelTec was acquired from Mitsubishi Hitachi Power Systems Europe (MHPSE). In January 2018, the second acquisition followed, when Balcke-Dürr signed an agreement to take over the Heat Transfer Products (HTP) Division of STF, a former direct competitor based in Italy.

For 2018, further add-on acquisitions are in the pipeline. Thus, management outlook for Balcke-Dürr through 2019 is strong, backed by the refocusing of activities combined with an attractive deal flow in this challenging market implying both organic growth and increasing market share.

Company profile of Mutares AG

Mutares AG, Munich (www.mutares.de), acquires medium-sized companies and parts of groups that are sold during a repositioning and have a clear potential for operational improvement. Mutares actively supports develops its portfolio companies with its own investment and expert teams as well as through acquisitions of strategic add ons. The aim is to achieve a significant increase in value focusing on sustainable growth of the portfolio company. Mutares AG shares are traded on the Frankfurt Stock Exchange under the symbol “MUX” (ISIN: DE000A0SMSH2).