Fifth buy-side transaction in 2022: Mutares acquires Cimos d.d. from TCH S.r.L.

• First platform acquisition of the newly opened office in Vienna
• Manufacturer of turbocharger, powertrain and electrification components for the automotive industry
• Target company with normalized revenues of just under EUR 200 million
• Numerous synergy effects with the portfolio companies KICO and ISH

Munich, 27 May 2022 - Mutares SE & Co. KGaA (ISIN: DE000A2NB650) has signed an agreement to acquire Cimos d.d. and its subsidiaries from TCH S.r.L. The company will act as a key Eastern European platform for Mutares’ Automotive & Mobility segment with seven production plants across Slovenia, Croatia, Serbia and Bosnia & Herzegovina as well as one logistics plant in Slovenia. Cimos d.d., with a total of approximately 2,000 employees, is highly complementary to the KICO and ISH Group. The closing of the transaction is expected in the third quarter of 2022.

Cimos d.d. is headquartered in Slovenia and together with its subsidiaries, is a leading producer of critical automotive components such as compressor and center housings, engine brackets, brake discs and drums, gearbox parts, nozzle rings and flywheels. The target company has normalized revenues of just under EUR 200 million. In 2022, Cimos d.d. is expecting revenues of around EUR 160-180 million, influenced by certain special effects.

Cimos d.d. allows Mutares to establish a strategic automotive platform enabling the broader Automotive & Mobility portfolio to tap into a very well invested machine park at competitive production costs. The high capabilities of Cimos d.d., together with machines that are applicable across a variety of products, allow for the offloading of significant workload from the portfolio with a very low CapEx requirement, given a universal machining approach.

This transaction marks the first acquisition of our new office in Vienna, which was opened at the end of 2021, focusing on the Austrian and Eastern European markets. This transaction underlines the trust of OEMs in Mutares and its business model, even in the context of a very difficult market environment.

Johannes Laumann, CIO of Mutares, comments: "We are excited to announce the first platform acquisition in Eastern Europe, which will provide our Automotive & Mobility segment with numerous advantages and synergies. We are confident that through operational improvements and growth, together with the KICO and the ISH Group, we can develop Cimos into becoming a worldwide leader in the sector."
 

Company profile Mutares SE & Co. KGaA

Mutares SE & Co. KGaA, Munich (www.mutares.de), as a listed private equity holding company with offices in Munich (HQ), Amsterdam, Frankfurt, Helsinki, London, Madrid, Milan, Paris, Stockholm and Vienna, acquires medium-sized companies in special situations, based in Europe, which show significant operational improvement potential and are sold again after undergoing a repositioning and stabilization process. Mutares actively supports and develops the portfolio companies with its own investment and operations teams as well as through acquisitions of strategic add-ons. With a focus on sustainable growth of the portfolio companies, the objective is to achieve a significant increase in value with a return on invested capital (ROIC) of 7 to 10 times on the total investment. In the financial year 2021, the Mutares Group generated consolidated revenues of EUR 2.5 billion with an average of around 14,000 employees worldwide. For the financial year 2022, consolidated revenues of at least EUR 4 billion are expected. Based on this, consolidated revenues are to be expanded to at least EUR 5 billion by 2023 and to at least EUR 7 billion by 2025. As the portfolio grows, so do consulting revenues, which together with portfolio dividends and exit proceeds accrue to the Mutares Holding. At this level, the medium- to long-term target for the Holding Company's dividend-relevant net income is in a range of 1.8% to 2.2% of consolidated revenues. Accordingly, a net profit in the holding company in the range of EUR 125 million to EUR 150 million is expected for the financial year 2025. Mutares relies strongly on a sustainable dividend policy consisting of a base dividend and a performance dividend. The Management Board and Supervisory Board together hold more than one third of all Mutares shares with voting rights. The shares of Mutares SE & Co. KGaA are traded on the Regulated Market of the Frankfurt Stock Exchange under the symbol "MUX" (ISIN: DE000A2NB650).

For more information, please contact:

Mutares SE & Co. KGaA
Investor Relations
Phone +49 89 9292 7760
E-mail: [email protected]
www.mutares.de

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