Mutares with record transaction activity in first half year
- Five transaction lay the foundation for future growth and shareholder value
- Three (partial) exits underline deal strength
- Successfully placed bond in the amount of EUR 50 million offers scope for further value-enhancing investments
Munich, July 16, 2020 – Mutares SE & Co. KGaA (ISIN: DE000A2NB650) has had a successful and transaction-rich first half year. Despite a challenging market environment due to the COVID-19 pandemic, the private equity investor has succeeded in further accelerating the high transaction activity of the previous year, placing it in the top European private equity league in terms of transaction numbers. Mutares expects a persistently active transaction activity on both the buy and sell side throughout the rest of the year.
Mutares successfully placed a EUR 50 million senior secured bond at the beginning of the year. The bond, which bears interest at 0% EURIBOR floor plus a margin of 600 basis points and is traded on the Oslo and Frankfurt stock exchanges, secures the financing of further inorganic growth of the portfolio and value-enhancing investments.
With a total of five successful transactions on the buy side and three transactions on the sell side, Mutares achieved a further increase in sales of over EUR 600 million compared to the annualized previous year and exceeded its own targets of 7-10x ROIC for the BEXity CZ and Rothemühle Poland parts exits.
Despite the imponderables of the first half of the year and an uncertain outlook, the Company is aiming for another record year: “I am confident that we will continue to be successful in the second half of the year and show above-average deal flow. The acquisition of the Swedish and Finnish activities of NCC, which was agreed after the reporting date of June 30 and is already the sixth transaction this year, shows that we are keeping our promises and that the current times offer our business model unique opportunities. We will use them to achieve our self-imposed growth, dividend and return targets”, says Johannes Laumann, CIO of Mutares.
In June, Mutares published a further developed communication strategy that focuses on transparency with clear key figures. In addition to increasing sales in the Group and the holding Company, Mutares is aiming for a multiple on the capital employed (ROIC) of at least 7-10. Both components contribute to the Company’s leading position in dividend yield and to create maximum shareholder value in the future.
Finally, CIO Johannes Laumann once again commented: “My thanks and those of the entire Management Board go especially to our employees, who have shown their full commitment even in these difficult times.”
Company profile Mutares SE & Co. KGaA
Mutares SE & Co. KGaA, Munich (www.mutares.de), acquires medium-sized companies and parts of groups with headquarter in Europe that are being sold in the course of a repositioning process at their owners and show a clear potential for operational improvement. Mutares actively supports and develops its portfolio companies with its own investment and consulting teams as well as through acquisitions of strategic add-ons. The aim is to achieve a clear value increase with a focus on sustainable, long-term growth of the portfolio company. In 2019, Mutares’ portfolio companies generated consolidated revenues of EUR 1,016 million and employed more than 6,500 people worldwide. The shares of Mutares SE & Co. KGaA are listed on Frankfurt Stock Exchange under the ticker symbol “MUX” (ISIN: DE000A2NB650).
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