Mutares to Acquire Continental’s Drum Brake Facility in Italy

In a strategic move aligning with its growing Automotive & Mobility focus, Mutares SE & Co. KGaA has entered into an agreement to acquire Continental’s hydraulic drum brake manufacturing and R&D operations in Cairo Montenotte, Italy. The transaction, expected to close in Q4 2025, represents a significant platform investment for Mutares while enabling Continental to streamline ahead of its spinoff as Aumovio.

Transaction Overview

Deal Structure and Scope

• Mutares will acquire the Cairo Montenotte site—including all employees (approximately 400)—and the full business operation through a share deal.
• The site is projected to generate around €100 m in revenue during 2025.

Product Range

• The plant specialises in hydraulic drum braking systems. Notable products include Simplex Electric Parking Brake (EPB‑Si) and Si Drum Brake units.

Timeline and Conditions

• Subject to standard regulatory and contractual approvals.
• Closing is scheduled for Q4 2025, post the planned separation and listing of Continental’s Automotive division as Aumovio in September 2025.

Strategic Drivers

Mutares’ Perspective

Johannes Laumann, CIO of Mutares, emphasised that the deal enhances its automotive portfolio, backed by the site's deep technical know‑how, skilled workforce, and mature product base—forming a strong foundation for operational improvement and growth.

Continental’s Rationale

Philipp von Hirschheydt, on behalf of the future Aumovio, highlighted that divesting the site supports Continental’s shift toward its core high‑value areas, like electric braking and friction integration, and sharpens its European manufacturing presence.

Broader Industry Impact

This transaction occurs amid a wave of restructuring across automotive component supply chains:

• Legacy components like drum brakes are still necessary, particularly for commercial vehicles and cost‑sensitive markets.
• Continental’s disposal followed by Aumovio listing signals its pivot to advanced technologies focused on EV and integrated brake systems.
• Private equity players like Mutares are acquiring stable industrial assets to scale via operational enhancements and platform building.

Outlook

What Comes Next for Mutares

• Following Q4 2025 closing, Mutares will integrate the site into its Automotive & Mobility division, aiming for productivity gains, output expansion, and potential add‑on acquisitions.

For Continental/Aumovio

• Proceeds from the sale and streamlined operations will fuel R&D investment in electric braking and friction technologies as Aumovio prepares for its independent debut.

‍

This acquisition underscores a structural shift in tyre and brake supply chains: legacy component operations are being carved out for more agile ownership, while OEM suppliers double down on innovation. As Mutares applies its operational playbook to a mature brake plant, Continental’s focus on electric and friction-integrated systems mirrors the broader transition driven by electrification and sustainability in automotive manufacturing.

‍

‍

Tagged with: Mutares, Continental, drum brake, Cairo Montenotte, Aumovio, automotive acquisition

‍