voestalpine Sells Buderus Edelstahl to Mutares in Strategic Shift Toward High-Performance Materials

voestalpine Sells Buderus Edelstahl to Mutares in Strategic Shift Toward High-Performance Materials

(IN BRIEF) voestalpine has announced the sale of its German subsidiary, Buderus Edelstahl, to Mutares SE & Co. KGaA, a prominent investment company. The agreement, signed on October 23, 2024, is awaiting regulatory approval and is expected to be finalized by the end of Q4 2024. The sale aligns with voestalpine’s strategic focus on high-performance materials, as it moves away from the more competitive sectors of standardized tool and engineering steels. Mutares will take over the management of Buderus Edelstahl, which is expected to benefit from Mutares’ existing portfolio and broad customer base. voestalpine expressed confidence that the deal will secure the long-term future of the majority of Buderus Edelstahl employees.

(PRESS RELEASE) LINZ, 24-Oct-2024 — /EuropaWire/ — voestalpine has reached an agreement to sell its German subsidiary, Buderus Edelstahl, to Mutares SE & Co. KGaA, a well-established investment company. The deal, signed on October 23, 2024, is now pending approval from competition authorities and is expected to close by the end of Q4 2024. While financial details of the sale remain undisclosed, the anticipated financial effects have already been factored into voestalpine’s earnings forecast for FY 2024/25 (EUR 1.4 billion EBITDA).

The sale marks a strategic move for voestalpine’s High Performance Metals Division, as it aims to streamline its focus on high-performance, advanced materials and reduce its involvement in the production of standardized tool steel and high-grade engineering steel, sectors facing increased price competition from non-European markets.

voestalpine CEO Herbert Eibensteiner expressed confidence in the decision, noting that Mutares’ experience in managing companies through transformation periods makes it the ideal partner to take Buderus Edelstahl forward. Eibensteiner emphasized that the sale aligns with voestalpine’s long-term strategy to enhance its product portfolio and competitive positioning on the global stage.

Reinhard Nöbauer, Head of the High Performance Metals Division, highlighted that voestalpine’s investments over recent years have solidified Buderus Edelstahl’s operational foundation. He expressed optimism about the company’s future under Mutares, believing the majority of the workforce will continue to have long-term employment despite current economic challenges.

Mutares CIO Johannes Laumann remarked that Buderus Edelstahl will enhance the group’s Engineering & Technology segment, reducing market risk exposure while benefiting from Mutares’ diversified product range and customer base. If necessary, Laumann indicated that a social plan will be discussed with employee representatives in the event of workforce adjustments, with the goal of optimizing manufacturing processes and strengthening the company’s future growth potential.

Founded nearly 300 years ago and integrated into voestalpine AG in 2007, Buderus Edelstahl is a key manufacturer of premium standard and special steels, serving sectors such as automotive, mechanical engineering, and tooling. In FY 2023/24, the company reported revenues of EUR 362 million and employs 1,130 people.

Media Contact:

Peter Felsbach
Head of Group Communications & Spokesman
Tel: +43/50304/15-2090
mediarelations@voestalpine.com

SOURCE: voestalpine AG