The move will help Mahindra exit its European two-wheleer business.
10 Nov 2022 | 4010 Views | By Autocar Professional Bureau
As part of its effort to divest from non-core businesses, Mahindra & Mahindra (M&M) on Thursday announced that it has received an irrevocable binding offer from European private equity major Mutares SE & Co. to acquire 50 percent of equity and a controlling stake of 80 percent in Peugeot Motocycles ...
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As part of its effort to divest from non-core businesses, Mahindra & Mahindra (M&M) on Thursday announced that it has received an irrevocable binding offer from European private equity major Mutares SE & Co. to acquire 50 percent of equity and a controlling stake of 80 percent in Peugeot Motocycles (PMTC).
The move will help M&M exit its European two wheeler business, which it entered post acquiring a 100 percent stake in Peugeot Motorcycle from Groupe PSA in October 2019.
In a statement, M&M said the closing of the transaction is expected in the first quarter of 2023 after consultation of the works councils and is subject to approval of the antitrust authorities, adding that the company remains a co-shareholder to support new product launches and the strong growth expected in the coming years.
Rajesh Jejurikar, ED, Auto & Farm Sectors, M&M, said, “Our efforts are directed towards sustaining this French legacy brand that has been delighting customers for 124 years. With an established track-record of transforming companies across Europe, coupled with their expertise in the automotive business, Mutares is an ideal partner to strengthen and grow the brand with continuing support from M&M”.
A well-travelled road
Mutares SE & Co. KGaA, Munich is a listed private equity holding company with offices in Munich, Amsterdam, Frankfurt, Helsinki, London, Madrid, Milan, Paris, Stockholm and Vienna. It 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 stabilisation process.
Speaking about the deal, Johannes Laumann, Chief Investment Officer of Mutares, added, “This is Mutares’ thirteenth acquisition in 2022. Peugeot Motocycles is an internationally recognised brand built on a rich history as the world’s oldest manufacturer of motorised two-wheelers. We are very proud to be associated with the brand and I strongly believe that we will be able to leverage the true potential of the company based on our vast experience in the industry and strong operational team and together with our partner M&M. Furthermore, Peugeot Motocycles acts as an OEM and we see a huge potential of strong synergies arising within our Automotive & Mobility segment.”
Headquartered in Mandeure, France, Peugeot Motocycles generates revenues of approximately EUR 140 million. Peugeot Motorcycles manufactures two and three-wheeler scooters which are distributed across 3,000 points of sale through subsidiaries, importers, and dealers in France and internationally, across three continents. The company has its own manufacturing facility in Mandeure, a joint venture with JNQQ (Jinan Qingqi Motorcycle) in China, as well as manufacturing partnerships with several large Asian players including THACO in Vietnam.
For the financial year 2022, Mutares is expected to generate consolidated revenues of approx. EUR four billion. Based on this, consolidated revenues are to be expanded to approx. EUR seven billion by 2025. As the portfolio grows, so do consulting revenues, which together with portfolio dividends and exit proceeds accrue to the Mutares Holding. 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. The shares of Mutares SE & Co. KGaA are traded on the Regulated Market of the Frankfurt Stock Exchange under the symbol "MUX".