Mutares portfolio company Buderus Edelstahl signs agreement for the partial sale of two business units to GMH Gruppe

Press release from $MUX (+1,29%) from 27.08.2025.

I'm curious to see if it was really worth it, as the takeover was only completed six months ago. I wonder if they didn't split up again quickly because of the steel tariffs?

Sale of the two business units Hot Rolling Mill and Mechanical Processing incl. Heat Treatment to strategic buyer
Further transformation measures planned at Buderus Edelstahl for future orientation

Munich, August 27, 2025 - Buderus Edelstahl, a wholly owned subsidiary of Mutares SE & Co. KGaA (ISIN: DE000A2NB650), has signed an agreement to sell its two business units Hot Rolling Mill and Mechanical Processing including Heat Treatment to GMH Group. The transaction is expected to be completed in the fourth quarter of 2025.

Mutares acquired Buderus Edelstahl from the Austrian steel and technology group voestalpine AG in February 2025 as a classic carve-out asset. The company is a renowned manufacturer of high-quality special steels with a focus on tool steel and engineering steel, a globally diversified customer portfolio and annual revenue of around EUR 360 million.

Following initial successful optimization and transformation measures on site since the acquisition, progress has already been made in optimizing production processes.

In order to pursue the further necessary transformation steps, the two business units Hot Rolling Mill and Mechanical Processing, including heat treatment, will be sold to GMH Gruppe, which will strengthen and further expand its portfolio in the special steels segment with this acquisition. This strategic buyer thus offers the two Buderus stainless steel divisions Hot Rolling Mill and Mechanical Processing including Heat Treatment great potential for further expansion. Despite difficult market conditions, this step has secured around 670 jobs at the Wetzlar site in the long term. Due to the continuing challenging market conditions in the steel industry, the drop forging division will also be sold to the FerrAl United Group (a wholly owned subsidiary of the Mutares Group). According to current planning, the remaining division will cease its operating activities in the course of the fourth quarter of 2025.

Johannes Laumann, CIO of Mutares, comments: "Since the acquisition of Buderus Edelstahl in February 2025, our local team has successfully implemented initial restructuring measures in a very short time, paving the way for this partial sale of Buderus Edelstahl. In GMH Gruppe, I believe we have found the ideal partner for the sustainable further development of the company."

S.A.U.@SAUgut77

1Semana

Punitive tariffs could well be one of the reasons, but on the other hand, only parts of the business are being sold here and who knows how quickly they will get the individual areas halfway fit so that they can now be sold at a profit 🤷🏻‍♂️

Nevertheless, there is still further potential with the remainder of Buderus.

However, since Laumann already spoke of at least 8 exits for 2025 at the beginning of the year, it may be an additional bonus or he already knew that the divisions could be sold again quickly 🤷🏻‍♂️

But be that as it may, I already knew why I increased my position with the last dip 😉

•

Dividendenopi👴@Dividendenopi

@SAUgut77 I'm the press office, then you go for the analyst assessment 😇😉. As you know, I'm out and not thinking much about getting back in at the moment. I will continue to follow your potential rating with interest

@Dividendenopi all respect, you can really be relied on 🫡👍🏻😅

But it's a shame you're out of here...

••

SteelDiv@FinSteel

Essentially, Mutares/Buderus has divested energy- and labor-intensive areas (downstream, hot rolling mill and refining) and seems to want to focus on upstream (steel mill, continuous casting). GMH has presumably secured additional production capacities and a few customers. So what remains at Buderus is the production of high-quality engineering steels as semi-finished products. Less complexity -> focus. However, this is unlikely to have been such a big deal, as GMH, like almost all EAF plants, is doing very badly.