Mutares Accelerates Expansion with Magna Acquisitions and Capital Injection

Mutares acquires two Magna divisions, raises capital in oversubscribed rights issue to fund aggressive US growth and address bond covenants.

Munich-based private equity firm Mutares is aggressively pursuing its growth strategy on two fronts, securing two automotive supplier divisions from industry giant Magna while successfully concluding a significant capital increase. The dual moves are designed to build larger, more valuable platform companies and fund an ambitious expansion into the United States.

The company has acquired Magna’s European lighting business and its car-top systems division. These operations, with a combined expected 2025 revenue of approximately $320 million, will be integrated into Mutares’ existing portfolio companies. The lighting unit will join the Amaneos Group, while the car-top systems business will bolster the HiLo Group. The strategic aim is to create comprehensive suppliers for automakers by combining exterior trim with lighting technologies or roof architectures, thereby increasing value per vehicle and enhancing the platforms' attractiveness for future exits.

To sustain this acquisition pace, Mutares has raised fresh capital. The company recently completed the institutional placement portion of its rights issue, placing around 1.1 million new shares at a price of EUR 24.50 each. This tranche, which raised EUR 26.4 million, was nearly three times oversubscribed, with over 60% of orders originating from investors in the United States and Great Britain. The total capital increase is expected to generate roughly EUR 105 million.

A significant portion of these proceeds, about 80%, is earmarked for the firm's US expansion plans. Beyond its existing Chicago office, Mutares intends to open a second US location. The transaction pipeline for this market is substantial, featuring acquisition targets with a total revenue volume of approximately EUR 4.8 billion. The remaining 20% of the funds will be used to strengthen the company's balance sheet.

This financial reinforcement also addresses a defensive need. At the end of 2025, Mutares’ net debt-to-equity ratio missed a previously agreed target. The company has requested bondholders to waive this covenant until June 29, 2026, and has presented a concrete repayment plan. Starting in the second quarter of 2026, Mutares intends to buy back a minimum of EUR 25 million of its 2023/2027 bond per quarter.

Operationally, the firm's foundation appears robust. Group revenue climbed to EUR 6.5 billion in 2025, with the holding company's net income rising to EUR 130.4 million. For the current year, management forecasts revenue between EUR 7.9 billion and EUR 9.1 billion, alongside a holding profit of EUR 165 million to EUR 200 million.

Despite these strong operational forecasts, the stock has faced pressure recently. Shares closed at EUR 25.65 last Friday, trading near a 52-week low and representing a decline of 14.21% since the start of the year. This price sits just over 4% above the rights issue subscription price of EUR 24.50.

Shareholders face a series of imminent deadlines and events. The subscription period for the rights issue, offered at a ratio of 5:1, runs until April 21, 2026. The new shares from the offering are scheduled for delivery on April 28, the same day the fully audited annual report for 2025 will be published. The first-quarter report for 2026 is due on May 12, followed by the annual general meeting on July 3. The acquisitions from Magna are expected to be finalized in the second quarter of 2026.