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Mutares

Mutares SE & Co. KGaA is a Munich-based international that specializes in acquiring and medium-sized companies in special situations, including corporate carve-outs from large conglomerates and distressed businesses undergoing transformation. Founded in by Robin Laik and Dr. Axel Geuer, the company operates as a holding entity focused on long-term value creation through a structured comprising three phases: acquisition of undervalued or challenged assets, operational turnaround and optimization, and strategic exit via sale or IPO to realize gains. Mutares targets companies with annual revenues ranging from €100 million to €750 million, primarily in the sectors of Automotive & Mobility, Engineering & Technology, Infrastructure & Special Industry, and Goods & Services, with a portfolio that spans , , and as of 2025. The firm is publicly listed on the under the ticker MUX since its initial listing in 2008 and has demonstrated strong growth, reporting consolidated group revenues of €5.3 billion in 2024 alongside a of €108.3 million for the holding, with 2025 projections estimating revenues between €6.5 billion and €7.5 billion driven by ongoing acquisitions and portfolio expansions.

History and Development

Founding and Early Acquisitions

Mutares was founded in 2008 by Axel Geuer and Robin Laik in , , establishing it as a dedicated to special situations investments. The company's initial strategy centered on identifying and acquiring distressed medium-sized industrial enterprises across , with a core emphasis on operational turnarounds to restore profitability and value. This approach targeted companies facing challenges such as market shifts, financial strain, or structural inefficiencies, allowing Mutares to leverage expertise in while building a diversified portfolio of industrial assets. The firm's inaugural acquisition occurred in August 2009 with Diehl Elastomertechnik GmbH, a producer of rubber and components for automotive and industrial applications, which was purchased from the Diehl Group and subsequently renamed Elastomer Solutions. This deal marked Mutares' entry into the manufacturing sector and demonstrated its capability to integrate and revitalize underperforming units through cost optimization and process improvements. Building on this foundation, Mutares expanded its holdings with the June 2011 carve-out of the decorative packaging division from Huber Packaging Group, rebranded as Klann Packaging, which specialized in innovative metal packaging solutions for consumer goods. In January 2012, Mutares acquired the EUPEC group from Indonesia's Korindo Group, a key player in power semiconductors including IGBT modules and thyristors used in and applications. This transaction broadened the firm's exposure to high-tech and underscored its willingness to pursue cross-border opportunities in specialized industries. The momentum continued in July 2013 with the purchase of Acoustics from the Autoneum Group, a supplier of acoustic and thermal components for the automotive sector, which Mutares restructured to enhance efficiency and market positioning. By 2015, Mutares added Norsilk, a French wood processing company focused on high-quality paneling and products, acquired from the Metsä Group in of that year. This acquisition highlighted the firm's growing international footprint, integrating operations in to complement its base. Collectively, these early deals solidified Mutares' operational model, achieving consolidated group revenues of €347 million in the financial year, driven by synergies across the portfolio. Headquartered in , the company maintained a strong operational core while extending its reach through targeted investments, laying the groundwork for sustained growth in industrial turnarounds.

Expansion and Key Milestones

Following its early successes, Mutares experienced significant post-2015 growth through strategic acquisitions that expanded its portfolio in engineering and technology sectors. In December 2016, the company acquired Balcke-Dürr, an international equipment manufacturer specializing in heat exchange technology for power plants and industrial applications, from SPX Corporation. That same year, Mutares acquired , a manufacturer of coreboard used in industrial packaging, from the Sonoco Group. In 2017, it purchased La Meusienne, a key producer of high-quality small-diameter stainless-steel tubes for applications including railway components and maintenance, from the Group. Later that year, Mutares acquired the Donges Group, a prominent European provider of steel construction services for bridges and industrial structures, from Power Systems Europe. Mutares advanced its international footprint starting in 2018 with the establishment of and the opening of a office, facilitating acquisitions in the and supporting broader expansion into , , and other European markets. Listed on the Entry Standard of the since May 2014 and uplisted to the Prime Standard in October 2021, Mutares further solidified its status through ongoing capital market activities, including a 2019 Capital Markets Day that highlighted its growth strategy and portfolio optimization. These steps transitioned the firm toward greater and investor engagement as a listed entity. Amid the , Mutares exhibited resilience by maintaining acquisition momentum and operational stability, leading to accelerated growth that surpassed its revenue target of €4 billion by 2023, with group revenues reaching €4.7 billion that year. By 2025, Mutares set revenue guidance for the group at €6.5–7.5 billion and a target of €130–160 million for the . The company also announced a new medium-term goal of €10 billion in group revenues by 2028. Key events included the completion of the acquisition from the Group in January 2025, adding firefighting and aerial platforms to the portfolio, and the October 2025 announcement of expansion into the sector through Magirus's agreement to acquire Achleitner Fahrzeugbau, a specialist in customized military vehicles, which was completed on November 3, 2025.

Business Model and Approach

Acquisition and Restructuring Strategy

Mutares specializes in acquiring companies facing special situations, such as carve-outs from larger corporations, insolvencies, or operational underperformance, primarily within industrial sectors like Automotive & Mobility, Engineering & Technology, Infrastructure & Special Industry, and Goods & Services. The firm targets mid-sized enterprises with annual revenues typically ranging from €100 million to €750 million, often purchasing them at low valuation multiples to capitalize on bargain purchase opportunities, as evidenced by gains exceeding €268 million in 2024 alone. This focus enables Mutares to acquire assets with strong underlying market positions but temporary challenges, allowing for value creation through targeted interventions rather than speculative bets. The core of Mutares' strategy revolves around a structured three-phase "buy-fix-sell" model designed to transform acquired entities within a 3-5 year holding period. In the initial realignment phase, the firm stabilizes operations by addressing immediate issues, such as securing customer and supplier relationships and implementing cost-saving measures like overhead reductions and personnel adjustments. This is followed by an optimization phase, where operational drives efficiency gains through expertise in , , digitalization, and production techniques, often involving management changes to install interim . The final harvesting phase prepares the company for exit via sale or strategic at significantly higher valuations, emphasizing sustainable profitability over rapid flips. Throughout these phases, acquisitions are typically full ownership stakes, enabling comprehensive control and transformation. Hands-on involvement is a hallmark of Mutares' approach, with a dedicated operations and consulting team of over 100 experts deployed across portfolio companies to provide and specialized support. This team, comprising industry veterans in areas like and , collaborates directly with local executives via monthly reporting and on-site initiatives to ensure execution of turnaround plans. While the initial focus remains on European-based firms, successful restructurings often lead to expanded global footprints, with post-turnaround companies represented in regions including , , and the . Success is measured by achieving a return on invested capital (ROIC) of 7-10 times over the holding period, underscoring a commitment to long-term value creation through rather than short-term . This metric reflects the strategy's effectiveness, as demonstrated by consistent exits generating substantial cash inflows, such as €70 million in 2024 from sales and partial divestitures.

Operational and Management Philosophy

Mutares employs a decentralized organizational structure that grants significant autonomy to its portfolio companies, allowing local management teams to handle day-to-day operations while maintaining their own reporting responsibilities. This approach is designed to foster entrepreneurial decision-making at the company level, with risks ring-fenced through legally separate entities under the oversight of Mutares Management SE as the general partner. Local offices in core European regions such as Germany, France, Italy, Sweden, and Spain, along with expansions into the United States, India, Dubai, and China (including Shanghai and Mumbai), support this structure by providing regional expertise without centralizing control. Central to Mutares' management is the "equity entrepreneurs" , which encourages portfolio company leaders to operate as owners by promoting an mindset and entrepreneurial . This is reinforced through performance-based incentives, including stock option plans, share-based payments, and bonuses totaling €9.7 million in 2024, which tie compensation to long-term value creation and employee involvement in success. The divides the lifecycle of investments into realignment, optimization, and harvesting phases, emphasizing intensive operational to transform distressed assets into stable, profitable entities rather than pursuing short-term exits. Mutares prioritizes sustainability and long-term development, integrating (ESG) principles to support efficient growth and stability over quick financial gains. Since signing the UN Global Compact in 2021, the company has embedded sustainability into its operations, including climate risk assessments during and ISO 14001:2015 certifications for environmental management. This focus extends to through a non-discriminatory , a zero-accident outlined in its , and measures to ensure access to highly qualified personnel. Innovation investment is a key pillar, with expenses reaching €7.1 million and capitalized development costs of €18.6 million in 2024, directed toward product development, add-on acquisitions, and initiatives. To achieve cost synergies and , Mutares provides centralized in , , , legal , and across the group. These functions include a management system, a whistleblower portal, and investments in cybersecurity and AI-based to enhance and . Examples of this support include administrative consolidations like those at HILO Group. By 2025, Mutares' global footprint encompasses numerous locations across more than 20 countries, spanning , , , and , with a diverse of over 34,500 employees across 37 companies. The company emphasizes building a skilled and inclusive team, targeting 25% female representation on its by 2026 and promoting diversity in gender, age, and international backgrounds to drive innovation and retention.

Portfolio

Sectors of Focus

Mutares primarily targets four key sectors in its : Automotive & Mobility, Engineering & Technology, Goods & Services, and Infrastructure & Special Industry. The Automotive & Mobility sector focuses on early-cyclical industries, including components and vehicles supplied to original equipment manufacturers (OEMs), such as plastic, metal, and mechatronic solutions. & emphasizes goods like machinery and plant engineering, often in late-cyclical markets. Goods & Services encompasses non-cyclical areas involving materials and processing, including chemicals and specialized industrial products. Infrastructure & Special Industry covers non-cyclical operations in , , , and security technology. As of mid-2025, the sector allocation reflects a diversified approach, with approximately 38% in Automotive & Mobility (annualized revenues of about €2.8 billion), 21% in (€1.5 billion), 22% in Goods & Services (€1.6 billion), and 19% in Infrastructure & Special Industry (€1.4 billion). This distribution supports Mutares' rationale of investing in resilient, industrial mid-market segments that offer strong turnaround potential, while diversification across cyclical and non-cyclical areas helps mitigate economic risks. By 2025, the portfolio has evolved to include greater emphasis on sustainable sectors, such as green within and applications in special industries, aligning with broader market shifts toward resilience and long-term viability. The overall portfolio comprises 37 companies across these sectors, generating combined annualized revenues exceeding €7 billion.

Automotive & Mobility

Mutares' portfolio in the Automotive & Mobility sector includes companies focused on rubber parts, semiconductors, rail technology, firefighting and defense vehicles, and mobility services. Elastomer Solutions, acquired in 2009 from Diehl Elastomertechnik Group, specializes in the production of rubber and elastomer components for automotive applications and remains an active part of the SFC Group. Eupec, a semiconductor manufacturer for power electronics acquired in 2012 from the Korindo Group, was sold in 2021 to LiCap GmbH along with related entities. The Gemini Rail Group, acquired in 2018 from Knorr-Bremse, provides rail engineering services including modernization and refitting of rail vehicles and continues operations across the UK. Magirus, a leading provider of firefighting vehicles, was acquired in January 2025 from Iveco Group and remains in the portfolio. Achleitner Fahrzeugbau, specializing in defense and special vehicles, was acquired in November 2025 by portfolio company Magirus, integrating into the group's offerings. Arriva's Danish, Serbian, and Polish operations, partially acquired in 2023 from Arriva Group and rebranded as GoCollective and ReloBus, offer bus and mobility services and are ongoing. VR Road Logistics, acquired in December 2024 from VR Group, provides road logistics and rail-integrated terminal services in Finland and remains active.

Engineering

In the Engineering sector, Mutares holds companies involved in heat exchangers, steel construction, acoustic components, rail maintenance, services, metal processing, and steel equipment. Balcke-Dürr, acquired in 2016 from SPX Corporation, manufactures heat exchangers and related equipment for power plants and industrial applications and continues as a core holding, despite divestitures of specific units like Nuklear Service in 2024. Donges Group, a steel and firm acquired in 2017, focuses on industrial steel structures and has expanded through add-ons; it remains operational. STS Acoustics, producing acoustic and thermal components for automotive use, was acquired in 2013 from Autoneum Group but sold in 2021 to Adler Pelzer Group. Glasgow Works (St. Rollox Railway Works), acquired in 2018 as part of Gemini Rail Group for rail maintenance, ceased operations in 2019 under Mutares, with the site transferred in 2024 to , marking it as former. EFACEC, providing services in power, mobility, and environment sectors, was acquired in November 2023 from the State and is ongoing. SMA Metalltechnik, a metal processing specialist for automotive and industrial components, was acquired in January 2025 and integrates into the SFC Group as current. Clecim, a supplier of steel processing equipment acquired in 2021 from , was sold in October 2025 to Fouré Lagadec (SNEF Group).

Chemicals

Mutares' Chemicals sector portfolio features companies in pumps, textiles, and production. , a producer of coreboard and related chemical-based materials acquired in 2016 from Group, was divested in 2021 to Accursia Capital. , specializing in and nonwoven fabrics for industrial applications, was acquired in 2015 from Metsä Group but sold in 2021 to Protac (Groupe Rose). Buderus Edelstahl, a high-performance manufacturer acquired in February 2025 from AG, saw its hot rolling mill and mechanical processing units sold in November 2025 to GMH Gruppe, with remaining operations continuing under Mutares.

Infrastructure & Special Industry

The Infrastructure & Special Industry category encompasses , rail services, and firms. Klann Packaging, a manufacturer of decorative metal acquired in 2011 from Huber Group, was sold in 2020 to Accursia Capital. La Meusienne, providing stainless steel tube services for rail and industrial uses, was acquired in 2017 from Group but divested in 2021 to LiCap alongside related assets. Asteri Facility Solutions, offering integrated services, was acquired in 2021 but sold in January 2025 to SOL Facility Services. As of November 2025, Mutares has completed over 20 exits since its founding, including notable sales like —a technology provider acquired in 2019 and sold in 2022 to Turntide Technologies—demonstrating its strategy of value creation followed by divestiture.

Acquisitions, Restructurings, and Divestitures

Notable Acquisitions

Mutares' acquisition of the in November 2017 marked an early strategic entry into the and construction sector, acquiring the construction firm from Power Systems Europe for its expertise in projects such as bridges and steel structures. With initial revenues exceeding €200 million, the deal established Donges as a platform investment, enabling subsequent add-ons that expanded its capabilities in facade systems and building technologies. In , Mutares completed the acquisition of Efacec Power Solutions from the Portuguese state in November, following a process after the company's due to financial difficulties. This €300 million revenue generator, a leading engineering firm in energy systems, mobility solutions, and advanced technologies, facilitated Mutares' diversification into the energy and technology sectors while providing a foothold in the Iberian market and specifically. The integration emphasized Efacec's role in infrastructure, aligning with broader European trends in and grid modernization. Mutares strengthened its presence in the automotive and mobility segment with the January 2025 acquisition of from Group, a historic firefighting and defense vehicle manufacturer with over €300 million in annual revenues and an surpassing €500 million at the time of the deal. This carve-out transaction enhanced Mutares' defense-related offerings, including specialized vehicles for emergency services and military applications, and supported operational synergies through rapid transformation initiatives. Further bolstering its portfolio, Mutares' subsidiary acquired Achleitner Fahrzeugbau GmbH in November 2025, following an agreement signed in October, to incorporate Achleitner's expertise in customized special-purpose vehicles for challenging terrains. Valued for its complementary fit in and applications, the expanded product lines in off-road and modular vehicle solutions, driving geographic expansion into and enhancing overall group capabilities in high-demand markets. These notable acquisitions typically originate from insolvency proceedings, corporate carve-outs, or distressed sales, with Mutares conducting thorough on targets featuring €50-500 million in revenues to assess turnaround potential. Strategic drivers include penetrating new geographies, such as through Efacec, and sectors like via the Magirus-Achleitner , which collectively fuel diversification. The impact of these deals has been substantial, contributing to Mutares' 20-30% annual revenue growth through integrated operations and add-on synergies, with the 2025 additions from and Achleitner propelling the group toward its €7 billion revenue target.

Bankruptcies and Liquidations

As a specialist in acquiring and distressed companies, Mutares frequently targets entities on the brink of , aiming to implement turnarounds that preserve value. However, not all interventions succeed, leading to occasional bankruptcies or liquidations among companies when external pressures or unforeseen deteriorations overwhelm efforts. One notable case occurred with Zanders , a specialty manufacturer acquired by Mutares in 2017. In June 2018, facing rising raw material and energy costs, Zanders initiated self-administration proceedings under law to facilitate while maintaining operations. Despite ongoing efforts by Mutares and , including a proposed , creditors rejected the reorganization concept in August 2018, prompting withdrawal of the self-administration application. The company then entered full , resulting in deconsolidation from Mutares due to loss of control by the end of June 2018, and was ultimately sold to a new owner in November 2018. A more recent example is Serneke Sverige AB, a construction firm acquired by Mutares in November 2024. Shortly after closing, the company filed for at the District Court on January 8, 2025, citing drastic financial deterioration during the second half of 2024 between signing and completion of the transaction. This rapid collapse highlighted challenges in assessing post-acquisition stability in volatile sectors like , leading to the of the entity. Mutares expressed regret but noted the issues exceeded initial expectations. In contrast, Mutares successfully averted insolvency for Balcke-Dürr Group, acquired in December 2016 from SPX Corporation amid operational distress. Through a comprehensive turnaround plan implemented in 2017, including footprint adjustments and a shift to service-oriented business, the company stabilized without entering formal proceedings, enabling subsequent add-on acquisitions and partial divestitures. Mutares' general approach to such situations emphasizes self-administration proceedings, where retains operational during to carve out viable business units and minimize disruptions. These tools allow for rapid interventions, often preserving jobs and core operations. While failures like Zanders and Serneke represent exceptions—comprising a small fraction of the portfolio—the lessons from these cases inform future , with no material impact on the overall group's .

Sales and Exits

Mutares employs an exit model that typically involves holding portfolio companies for 3 to 5 years post-acquisition, with the objective of achieving a return multiple of 2 to 3 times the invested capital. This approach allows sufficient time for operational stabilization and value creation before divestiture, aligning with the company's buy-out and turnaround strategy in special situations. Among notable sales, Mutares divested its portfolio company Royal de Boer, a manufacturer of and equipment, to Turntide Technologies in December 2022, marking the fourth exit of that year. In October 2025, the company sold Clecim, a supplier of steel processing equipment, to Fouré Lagadec, a of the SNEF Group, following an irrevocable offer received in September. More recently, in November 2025, Mutares completed the sale of two business units from Buderus Edelstahl—the hot rolling mill and mechanical machining operations—to GMH Gruppe, less than a year after acquiring the parent entity. For 2025, Mutares anticipates over €200 million in gross exit proceeds, driven by an active pipeline of divestitures. A key component includes the partial placement of shares in Motors AG in April 2025, where Mutares sold 910,000 shares for €30.9 million, reducing its stake to 40.1%; a further reduction to approximately 23% occurred later in the half-year. This transaction exemplifies ongoing efforts. The strategic rationale for these exits centers on realizing value from stabilized and restructured assets, enabling reinvestment into new acquisition opportunities to sustain the company's growth cycle. By divesting mature holdings, Mutares unlocks capital while contributing to holding-level expansion, as evidenced by the 32% year-over-year increase to nearly €70 million in the first half of 2025, partly attributable to exit gains. Mutares has established a robust track record, completing over 40 exits by mid-2025, including five divestments in the first half of the year alone, which have underpinned consistent value generation for shareholders.

Financial Performance

Shares and Stock Listing

Mutares & Co. KGaA is publicly listed on the Scale segment of the under the MUX, following its conversion from a corporation to a in July 2019, with trading under the current structure commencing in October 2019. The company's (ISIN) is DE000A2NB650. As of late 2025, Mutares has approximately 21.35 million . Management and members, including CEO and Robin Laik, collectively hold around 36% of the shares, with Laik personally owning 25%, reflecting strong alignment with shareholders in this special situations investment firm. The free float stands at approximately 65%, comprising institutional investors (roughly 7%) and the general public. The has exhibited closely linked to the timing and success of exits and acquisitions, characteristic of a private equity-focused entity. In 2025, shares traded in the range of €21–€49 (52-week range as of November 2025), resulting in a of approximately €570 million as of November. Key events include the issuance of a €100 million senior secured in March 2023 maturing in 2027, which was subsequently increased through tap issues to a total volume of €200 million by early 2024, with an additional €135 million senior secured issued in September 2024 to support growth initiatives. Additionally, in May 2025, Mutares was temporarily excluded from the small-cap index following Deutsche Börse's quarterly review and an audit by financial authorities, but shares were reinstated in June 2025, after having been admitted in December 2023. Investor relations emphasize transparency through quarterly financial reporting, including updates on performance and deal activity, alongside telephone conferences and participation in to engage special situations investors.

Revenue and Profit Development

Mutares has demonstrated consistent financial growth since its early years, with group revenues expanding from €347 million in 2013 to €1,016 million in 2019 ahead of its . This period reflected the company's of acquiring and underperforming businesses, leading to operational efficiencies and scaling through expansion. By 2019, the group had surpassed the €1 billion threshold for the first time, driven by seven acquisitions that year alone. Following its IPO in October 2019, Mutares accelerated its growth trajectory. Group revenues rose to €2,504 million in 2021, up 58% from €1,584 million in 2020, fueled by acquisitions and post-restructuring performance in portfolio companies. This momentum continued, with revenues reaching €3,752 million in 2022 (a 50% increase), €4,689 million in 2023 (25% growth), and €5,262 million in 2024 (12% rise). At the holding level, advanced from €50.7 million in 2021 to €72.9 million in 2022, €102.5 million in 2023, and €108.3 million in 2024, supported by steady consulting and management fees alongside exit gains.
YearGroup Revenues (€ million)Holding Net Income (€ million)
20191,01622.5
20201,58433.4
20212,50450.7
20223,75272.9
20234,689102.5
20245,262108.3
Sources: Mutares annual reports and key figures. Key drivers of holding profitability include proceeds from divestitures and operational enhancements in portfolio companies. For instance, the 2023 of Special Melted Products generated a record €150 million in cash inflow for the holding, marking the largest such transaction in company history. Additionally, consulting and management fees from portfolio oversight contributed approximately €110 million in revenues for the holding in 2024, providing a stable income base. In early 2025, the group reported revenues of €1,526 million in and €3,106 million in H1, while holding reached €29.5 million in and €69.8 million in H1 (a 32% year-over-year increase). For the first nine months of 2025, group revenues reached €4,730 million (up 21% year-over-year), with holding at €83.5 million (up 56% year-over-year). For the full year 2025, management projects group revenues of €6.5–7.5 billion and holding of €130–160 million, anticipating heightened exit activity; this guidance was reaffirmed in 2025. Despite these gains, Mutares faces headwinds from cyclical sectors such as automotive and , where persistent and high financing costs have pressured margins in recent years. However, portfolio diversification across industries has mitigated these impacts, enabling sustained revenue expansion.

ESG and Sustainability

Overall Strategy

Mutares embedded (ESG) considerations into its operations starting in the 2020 financial year, with the publication of its first voluntary sustainability report that year. The company aligned its ESG framework with the EU Taxonomy Regulation (2020/852) for sustainable activities, beginning formal reporting on taxonomy-eligible revenues in 2023, and committed to the (SDGs) through its signature of the in 2021, which incorporates principles on , labor, , and . This alignment supports Mutares' role as a by embedding sustainability into its value creation lifecycle across portfolio companies. In September 2025, assigned Mutares an ESG Score of 31 based on its assessment, indicating performance relative to industry peers. The ESG framework rests on three core pillars: environmental responsibility focused on decarbonization and ; social aspects emphasizing , employee health and safety, and fair labor practices; and centered on ethical conduct, , and anti-corruption measures. Under the environmental pillar, Mutares prioritizes reducing , with a group-wide target of a 10% CO₂ reduction per portfolio company by 2028 relative to baseline levels. The social pillar includes initiatives for , such as aiming for 30% female candidates in shortlists by 2026, alongside promoting zero-accident workplaces. Governance efforts feature the rollout of a comprehensive across the group by 2024 to ensure adherence to ethical standards and prevent corruption. ESG integration occurs systematically through due diligence processes during acquisitions, where potential environmental and social risks are assessed, followed by post-acquisition implementation of ESG key performance indicators (KPIs) tailored to each portfolio company. This approach extends to supply chain management, with supplier codes of conduct introduced to enforce human rights and environmental standards, achieving adoption by 73% of portfolio companies in 2022. Targets also include expanding certifications like ISO 14001 for environmental management and for among portfolio entities. Mutares publishes annual nonfinancial reports, with mandatory disclosures beginning in 2021 under regulations, building on the initial 2020 voluntary effort to provide comprehensive ESG performance data. The 2022 nonfinancial report marked the first detailed group-wide integration of ESG metrics aligned with the (GRI) standards. Stakeholder engagement involves ongoing collaboration with investors, employees, suppliers, and NGOs through dialogue forums, whistleblower systems, and joint initiatives to advance sustainable turnarounds, ensuring and alignment with broader societal expectations.

Environmental Responsibility

Mutares integrates environmental responsibility into its operational strategy across its portfolio companies, emphasizing reductions in resource consumption and emissions through targeted initiatives. As part of its commitment to the since 2021, the company advises portfolio firms on implementing environmental management systems, with 74% of its portfolio companies certified under by 2023 to standardize environmental practices and ensure compliance with sustainability standards. Key initiatives focus on , particularly in the and segment, where portfolio companies invest in measures such as LED lighting retrofits, installations, and systems to lower energy use. For instance, Balcke-Dürr, a provider of heat recovery steam generators and heat exchangers, develops low-emission technologies for power plants that support upgrades to meet stricter emission regulations, contributing to aligned with the . In the chemicals and materials sectors, efforts include shifting toward sustainable sourcing and reducing material waste, though specific green material transitions remain integrated into broader efficiency programs. These actions align with Mutares' overarching framework by prioritizing environmental during acquisitions. Mutares has set a target to reduce CO₂ emissions by at least 10% in each portfolio company by 2028, focusing primarily on Scope 1 and 2 emissions through energy optimization. Monitoring occurs via annual assessments, which track total —1,548,757 MWh in 2024, with 19% from renewable sources—and report progress against EU Taxonomy criteria, where 21.7% of 2024 revenue supported climate mitigation activities. Investments in the , such as recycling programs in the automotive segment, further minimize environmental impact, with 7.3% of revenue dedicated to circular economy-aligned operations in 2024. Progress includes avoiding approximately 4,151 tons of CO₂ emissions in 2023 through implemented energy efficiency measures across the portfolio, demonstrating measurable impact while building toward the 2028 target. Renewable energy sourcing partnerships are emerging to increase the renewable share beyond the current 19%, supporting long-term decarbonization.

Social Responsibility

Mutares places a strong emphasis on within its framework, aligning its operations with the principles of the UN Global Compact, which it joined in 2021, to uphold labor standards, , and fair working conditions across its portfolio companies. fosters a non-discriminatory work environment, promoting equal opportunities and actively combating in hiring and employment practices. With an average workforce of 29,468 employees in 2024, including 19,826 wage workers and 9,498 salaried employees, Mutares prioritizes through performance-based systems designed to motivate and secure key talent during restructurings and operational optimizations. In terms of and , Mutares has established specific targets for in roles, aiming for 33.33% women on the first board level and 26.31% on the second level by 2026. The company achieved its goal of 25% on the by the end of , with overall distribution at 28% and 71% . These initiatives extend to inclusive hiring practices in its international offices, supporting a diverse talent pool across 327 consolidated companies, 108 of which are in and 219 abroad. Mutares demonstrates commitment to community engagement through its core turnaround strategy, which focuses on preserving and securing jobs in acquired companies undergoing , as evidenced by provisions for personnel and plans totaling €62.2 million in 2024 to manage workforce transitions. While specific CSR projects like apprenticeships are integrated into portfolio operations in regions such as and the , the company's approach emphasizes to maintain local stability. Health and safety remain central to employee well-being, with Mutares pursuing a zero-accident and achieving a 100% success rate in its annual target to reduce occupational accidents by 3% per employee in pre-Q3 2024 portfolio companies. programs on occupational , environmental protection, and IT security are provided at production sites to support these goals, contributing to overall workforce development. structures oversee the implementation of these policies, ensuring alignment with broader standards.

Governance and Compliance

Mutares SE & Co. KGaA operates under a dual-board structure as a (KGaA), with the providing oversight of the Board of its , Mutares Management SE. The , consisting of four members as of 2024, monitors , , , and matters, convening regularly to review reports from the Board. The of the specifically oversees the financial reporting process, the effectiveness of the system, and the audit of annual . The company's compliance framework is anchored by a dedicated , overseen by a Compliance Officer who reports regularly to the , the full Management Board, and the . This system includes policies on and prevention, prohibiting any form of , improper advantages, or toward public officials or business partners, with violations subject to investigation and sanctions. In 2024, 72% of portfolio companies had adopted the CMS, reflecting a 26% increase from the previous year, supported by training programs and risk analysis software. Risk management at Mutares employs a systematic, multi-stage approach that integrates factors into processes for acquisitions, assessing potential risks and opportunities to inform investment decisions. All 2024 acquisition decisions incorporated results, focusing on risks such as environmental impacts and issues. Annual audits are conducted on a risk-oriented basis across portfolio companies, with internal audits following an approved plan that identifies key areas and implements mitigating measures, followed up in subsequent years. Transparency is ensured through adherence to the German Stock Corporation Act (Aktiengesetz), including the annual Declaration of Compliance with the German Corporate Governance Code under Section 161 AktG, which confirms implementation of recommended practices. The company maintains a whistleblower portal, the Mutares Integrity Line, allowing anonymous reporting of potential violations of laws, the , or internal policies, with investigations handled by the compliance department. In line with its overall strategy, Mutares has targeted board diversity, achieving 25% female representation on the by December 2024, with goals set for further increases by 2026, emphasizing a mix of gender, age, and professional expertise. Mutares navigates ethical challenges in handling insolvencies and special situations by prioritizing legal and interests in turnaround processes, with no major violations reported as of 2024 beyond minor regulatory fines, though BaFin initiated an in July 2025 of the 2023 for potential violations, with no resolution as of November 2025.

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