Mutares Balances Rapid Exits with Magirus IPO Ambitions as Stock Recovers from Lows

Mutares sells Walor Precision Turning to Reed Capital for €55M revenue, continuing its distressed-asset turnaround strategy. The company targets a €2.00 minimum dividend and explores Magirus IPO amid strong order backlog.

Mutares is turning up the heat on its portfolio overhaul. The Munich-based investment company has agreed to sell the precision-turning division of Walor, a car-parts supplier it bought just under three years ago, to Reed Capital. The deal, which is expected to close this summer, covers the entire Walor Precision Turning unit and will generate annual revenue of around €55 million from its 420 employees. The core asset is a plant in Sfântu Gheorghe, Romania, which alone posted a net profit of nearly €1.6 million last year.

The Walor sale is the latest in a string of exits that underline Mutares’ standard playbook: buy distressed assets, restructure them, and flip them at a profit. Earlier this year the group offloaded the NEM Energy Group to Hyundai and let go of the Benelux arm of F.lli Ferrari Holding. The goal is to free up capital for fresh acquisitions and shareholder payouts.

The transaction churn is accelerating. In the first quarter of 2026 alone, Mutares completed three acquisitions and six exits. Management plans three more signings and four closings in the second quarter. Group revenue jumped to €1,678.7 million in Q1, from €1,526.2 million a year earlier, and exit proceeds are expected to comfortably beat last year’s level of around €230 million.

That performance feeds directly into Mutares’ dividend policy. The board has proposed a structural minimum dividend of €2.00 per share for approval at the annual general meeting, giving a baseline yield of roughly 7% at the current share price. On top of that, a performance-linked bonus dividend is on the table if exits meet their targets — keeping the upside open for shareholders.

The stock, which trades around €28.50, has pulled back 22% from its annual high, bringing the market capitalisation down to €626 million from roughly €736 million earlier in the year. The relative strength index sits at 59.3, squarely in neutral territory, and the shares are 7% above their 50-day moving average — a sign of recovering momentum. The 52-week low of €23.30 is now 22% behind, suggesting the bottom has been set.

What the market may be underpricing is the potential of Magirus. Mutares is exploring strategic options for the fire-engine and special-vehicle maker, including a possible IPO. The numbers are compelling: Magirus generated €85 million in revenue in the first quarter, with an order backlog exceeding €880 million that provides visibility well into 2027. The turnaround is real — adjusted EBIT improved from minus €40 million in 2024 to minus €12 million last year, while revenue climbed from €276 million to €336 million. The addition of Achleitner Fahrzeugbau (now Magirus Defense Systems) in October 2025 gives the division a defence arm with existing military customer relationships.

A successful Magirus exit would be a powerful catalyst, but Mutares still has work to do on its balance sheet. Bonds outstanding stood at €385 million at the end of 2025, and the company aims to reduce that to between €250 million and €300 million by the end of 2026. The debt reduction is a running priority.

The broader growth targets remain ambitious: Mutares is targeting at least 25% annual growth in both group revenue and holding net profit through 2030, and management has indicated that the earlier goals set for 2028 will now be reached much sooner. With the Walor sale out of the way and a Magirus IPO on the horizon, the company’s asymmetric risk-reward profile is coming into sharper focus — provided the exit machine keeps running at full speed.