mutares acquires the pipeline manufacturer BSL as an add-on for EUPEC

mutares AG (ISIN: DE000A0SMSH2) has acquired the French pipeline manufacturer BSL Pipes and Fittings SAS. After the successful development of EUPEC, mutares strengthens its portfolio by investing in a second company in the oil- and gas pipeline sector.

mutares has acquired BSL Pipes and Fittings SAS (BSL), a manufacturer of welded stainless steel pipes with lengths of up to 12 meters. The transaction is part of a corporate refocusing program initiated by the French industrial group Génoyer SA, which is hereby concentrating on its core business.

In 2014, BSL generated a turnover of EUR 21m, with a client portfolio mainly comprised of companies from the oil and gas industry. At its headquarters in Billy-sur-Aisne in Northern France, BSL employs approximately 100 employees. The current project activities in the pipeline sector provide a sound basis for future growth of the company.

BSL is a perfect add-on to EUPEC which was acquired by mutares in 2012 and has developed in an outstanding way ever since. With an expected EBITDA of EUR 10m in 2015, EUPEC is one of the most important and most profitable growth drivers in the portfolio of mutares. Considering the complementary customer portfolio in the on- and offshore sector, the potential of vertical integration and operational improvements, the acquisition of BSL is an optimal strategic add-on and an important milestone in the development of EUPEC.

Furthermore, the recent decision of building the second Nord Stream pipeline is the major chance for the European pipeline business. EUPEC was the exclusive provider of pipeline coatings in the first Nord Stream project and possesses the only suitable plant at the Baltic Sea. The project volume of the first Nord Stream project amounted to more than EUR 700m.

Dr. Axel Geuer, CEO of mutares, emphasizes: “BSL is already the second add-on acquisition this year which underlines the strategic development of our portfolio. Moreover, we have already proven our active M&A approach by two successful exits in 2015.”

Due to the dynamic transaction activities in the current year, mutares reached an annualized group turnover of more than EUR 850m. Hence, the outlook towards group revenues of EUR 1.8bn by 2018 can be confirmed.