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Mutares SE & Co. KGaA has signed an agreement with the Continental group sector Automotive to acquire its drum brake manufacturing and R&D facility in Cairo Montenotte, Italy. The transaction is part of a strategic move for both companies, strengthening Mutares’ portfolio while allowing Continental to refine its business focus. The deal, which includes all employees and business activities, is expected to be finalized in the fourth quarter of 2025.
Key Highlights
- Acquisition Deal: Mutares is set to acquire Continental’s production and R&D location for drum brakes in Cairo Montenotte, Italy.
- Business Continuity: The agreement is a share deal that includes the transfer of all business activities and approximately 400 employees to Mutares.
- Financial Profile: The Italian facility is projected to generate revenues of about EUR 100 million in 2025.
- Strategic Realignment: For Continental, the sale is a step toward consolidating its European manufacturing footprint and focusing on core technologies. For Mutares, it represents a new platform investment to bolster its Automotive & Mobility segment.
- Closing Timeline: The transaction is anticipated to close in Q4 2025, pending customary approvals and the listing of Continental’s Automotive group sector as the independent company, Aumovio.
Details of the Transaction
The facility in Cairo Montenotte is a key site for hydraulic drum brakes, manufacturing products that include the Parking Brake for Simplex Brakes (EPB-Si) and the Drum Brake (Si). The acquisition by Mutares is structured as a share deal, ensuring a comprehensive takeover of the site’s operations, research and development capabilities, and its entire workforce of around 400 people. This move will establish the Italian plant as a new platform investment within Mutares’ growing Automotive & Mobility segment.
Strategic Vision for Growth and Focus
Johannes Laumann, CIO of Mutares, stated that the acquisition enhances their automotive portfolio. “The long-standing expertise, strong product portfolio and highly skilled workforce provide an excellent foundation for operational development and future growth,” Laumann commented, highlighting the strategic value of the Italian site.
On the seller’s side, the transaction aligns with Continental’s long-term strategy. Philipp von Hirschheydt, a member of the Continental Executive Board and CEO of the future Aumovio, expressed confidence that Mutares is the right owner to lead the site forward. He emphasized that the divestment is a crucial step in sharpening the company’s focus on its core business and streamlining operations. This allows Continental to better allocate R&D and investment capital toward future technologies such as electric braking and integrated friction solutions. The move is part of a broader strategy to consolidate the company’s manufacturing footprint in Europe ahead of the planned transformation of its Automotive sector into the independently listed company Aumovio in September 2025.
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