Clearwater International Germany advises Mitsubishi Hitachi Power Systems Europe GmbH on the sale of Donges SteelTec GmbH

Clearwater Advisor

Clearwater International Germany has advised Mitsubishi Hitachi Power Systems Europe (MHPSE) on the sale of Donges SteelTec (Donges) to Mutares AG (Mutares).

Donges, headquartered in Darmstadt, Germany, was established in 1872 and is wholly owned by MHPSE. The company is an established and leading heavy steel construction supplier primarily for bridges, building, and energy-related constructions. Donges provides static calculations, engineering solutions as well as manufacturing and construction services and has an annual steel tonnage of approx. 17,000t. Its diverse customer base includes a number of renowned private and public clients. As of today, Donges has approx. 200 employees.

Mutares, founded in 2008 and headquartered in Munich, Germany, is a stock-listed industrial holding company focusing on investments in medium-sized companies in special situations, which stem from corporate spin-offs and carve-outs providing operational improvement and growth potential. Mutares’ objective is to achieve a swift repositioning and sustainable profitable growth for its portfolio companies. With a consolidated 2016 annualised turnover of c.€1.1bn, the portfolio of Mutares currently consists of 13 companies across five different industry sectors, all headquartered in Europe.

Mutares will acquire Donges via its portfolio company Balcke-Dürr GmbH. The Group manufactures components for energy efficiency and the reduction of emissions in the chemical and power generating industry. Mutares acquired the company in 2016 from US-based SPX Corporation. In 2016, the company generated a turnover of €142m with 650 full time employees at its sites in Germany, Italy, Poland, Hungary, China and India.

Following the Fukushima (Japan) accident in 2011 and the implementation of a stricter energy policy in Western Europe, the energy mix has significantly shifted away from traditional power generation to sustainable energy sources. Consequently, the energy-related business for Donges declined over the last years. To account for lower order volumes in the traditional energy segment, Donges has undergone restructuring to manage costs.

As an industrial holding with industry knowledge and operational/ functional capacities, Mutares wants to support Donges’ management in developing and implementing the necessary operational and strategic measures to pursue a successful shift towards attractive growth niches within the market for heavy steel construction.

The Clearwater International team was led by Managing Partner Ralph Schmücking with support from Associate Daniel Stratenhoff and Analyst Michael Frohschauer.

“ The sale of Donges will allow Mitsubishi Hitachi Power Systems Europe to refocus on its strategic core areas and at the same time enable Donges to grow organically as well as to strengthen its market presence in relevant niches beyond the energy segment. We are delighted to have worked with Clearwater International over the course of the project. With a dedicated approach, in-depth industry expertise and strong relationships with financial investors, the team has been able to structure the transaction to our complete satisfaction.”

Rainer Kiechl, CEO, Mitsubishi Hitachi Power Systems Europe - Germany

“ We are delighted to have assisted Mitsubishi Hitachi Power Systems Europe in finding the optimal partner for Donges in the highly competitive heavy steel construction market. As a strong strategic partner, Mutares will be able to further manifest Donges’ leading market position and capitalise its growth opportunities.”

Ralph Schmücking, Managing Partner, Clearwater International