(Alliance News) - Iveco Group NV announced Thursday that it has reached a binding agreement to transfer ownership of Magirus GmbH and its firefighting subsidiaries with Mutares SE & Co. KGaA, an investment holding company specializing in turnaround transactions.

Magirus manufactures and sells specialized vehicles and equipment, employing more than 1,300 people in Germany, Italy, France and Austria.

In 2023, the company contributed about 2 percentage points to Iveco Group's revenues, reporting an adjusted negative Ebit of EUR35 million.

The company expects the transaction to be completed no later than January 2025, and as a result of the transfer, Iveco Group's results will be negatively impacted by EUR115 million in the first quarter of 2024.

This one-time negative effect will be excluded from all adjusted metrics.

Magirus will leave the Iveco Group's scope and will continue its own independent path into the future of the firefighting business.

"In its new ownership configuration, it will be more flexible and agile in seizing business opportunities, and will be able to embark on a renewed, stable and healthy path. This opens a new chapter in the long history of the brand, which will be able to compete even more effectively and efficiently in its specific market," reads the company's statement.

Mutares is a publicly traded private equity holding company with headquarters in Munich and offices in Amsterdam, Frankfurt, Helsinki, London, Madrid, Milan, Paris, Shanghai, Stockholm, Vienna and Warsaw, specializing in the enhancement of medium-sized companies with significant operational development potential.

Iveco Group's stock is in the green by 1.4 percent at EUR12.34 per share.

By Chiara Bruschi, Alliance News reporter

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