Private equity firm Mutares advised by CMS on acquisition of two subsidiaries from Knorr-Bremse

Munich – Listed private equity firm Mutares AG has acquired two UK subsidiaries from Knorr-Bremse AG, a leading manufacturer of braking systems. The transaction comprises two industrial service providers for rail vehicles, Knorr-Bremse RailServices (UK) Limited and Kiepe Electric Limited, which have production facilities in England and Scotland. Completion of the deal is expected in the autumn.

A CMS team from Germany, England and Scotland headed by lead partner Dr Martin Kolbinger advised Mutares AG on the legal aspects of the transaction. This is the first transaction for Mutares in the UK.

Munich-based Mutares AG is listed on the Frankfurt Stock Exchange. It specialises in acquiring mid-sized companies and businesses which are being sold by their previous owners during repositioning and offer clear potential for operational improvement.

Knorr-Bremse RailServices (UK) Limited is a leading manufacturer of safety systems for trains, with around 600 employees at two locations. Kiepe Electric Limited has some 100 employees. It offers turnkey repair and upgrade solutions for international manufacturers of rail vehicles, as well as project management and system integration. The two companies generated combined sales of around GBP 75 million in the 2017 financial year, equivalent to approximately EUR 85 million. For Mutares AG, the purchase represents an important milestone in its strategy to enter the UK market. The companies will be held as a new platform investment in the Engineering and Technology segment.

CMS Germany

Dr Martin Kolbinger, Lead Partner
Dr Jessica Mohaupt, Senior Associate, both Corporate/M&A
Dr Markus Häuser, Partner, TMC

CMS UK

Stuart MacLean, Partner, Corporate/M&A

Jan Thöle, General Counsel
Denis Ahluwalia, Tax Manager

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