Voestalpine sells Buderus Edelstahl to Mutares

Voestalpine has concluded negotiations for the sale of its German Buderus Edelstahl subsidiary to Mutares SE & Co. KGaA, a German investment company, the Austrian steelmaker tells Kallanish.

The contract was signed on Tuesday, with the transaction now awaiting approval from competition authorities. The parties have agreed not to disclose the purchase price. The transaction is expected to be concluded by year-end.

The steelmaker announced in March it planned to sell the subsidiary (see Kallanish passim).

The expected financial impact of the sale has already been communicated and is priced into voesatlpine’s earnings forecast for the ongoing 2024/2025 business year – €1.4 billion ($1.5 billion) Ebitda.

Following the sale of Buderus Edelstahl, the High Performance Metals Division of voestalpine is concentrating its product portfolio on the technologically demanding high performance materials segment. “We want simultaneously to reduce our share of standardised tool steel and high-grade engineering steel production, the price of which is coming under increasing pressure due to greater competition from outside Europe,” the steelmaker notes.

“The sale is aimed to strengthening our position in the global marketplace over the long term,” says chief executive Herbert Eibensteiner.

“With the acquisition of Buderus Edelstahl, we are further strengthening our Engineering & Technology segment in the area of steel components and securing our own steel base,” notes Mutares chief investment officer Johannes Laumann. “Buderus Edelstahl will also benefit from our existing product range and broad customer structure in the future, reducing its dependence on individual market risks and positioning itself more broadly for future growth within the Mutares Group.”

Buderus Edelstahl, a company with almost 300 years of history and part of voestalpine AG since 2007, is a leading manufacturer of high-quality standard and special steels primarily used in vehicle manufacturing, plant and mechanical engineering, and construction. In the 2023/2024 business year, the company generated revenue of €362 million and employs 1,130 staff.

Mutares acquires companies in special situations which show significant operational improvement potential and are sold again after undergoing a repositioning and stabilisation process. For the 2024 fiscal year, it forecasts consolidated revenue of €5.7-6.3 billion.

Svetoslav Abrossimov Bulgaria