Tupy announces MWM do Brazil acquisition and entry into new sectors
April 18, 2022
The deal promotes vertical integration to offer machining, assembly and engineering services; expands opportunities in decarbonization and inserts Tupy in the energy, replacement and maritime segments
Tupy S.A. (“Tupy”), a Brazilian multinational dedicated to the development and manufacture of structural components for capital goods, today announces an agreement for the acquisition of MWM do Brazil, a wholly owned indirect subsidiary of Navistar International Corporation, in turn, a subsidiary of TRATON SE, one of the world´s leading commercial vehicles manufacturers.
This combination is in line with the growth strategy of both companies adding value to products, and promoting viable solutions for decarbonization.
Formerly dedicated to engine development, today MWM is a company that manufactures third-party engines under contract manufacturing agreements. This includes machining, assembly, calibration, technical validations and engineering services. MWM also manufactures gensets and operates in the aftermarket sector. Recently, it has announced partnerships to convert products to the consumption of natural gas, biogas and the use of biomethane, meeting the needs of Brazilian agribusiness.
With an extensive customer base, leveraged by recently acquired operations in Portugal and Brazil, Tupy supplies components to the majority of truck, agricultural, construction machinery and engine manufacturers in the West. The main purpose of this acquisition, is the extension of the services provided by MWM to all Tupy customers.
“Together, MWM and Tupy become a unique company in the industry that brings together, in a single supplier, casting, machining, assembly, technical validation and associated engineering activities. We will join a company with technological expertise, formed by seasoned leaders, and entrepreneurial culture. With the technical competence and credibility of this team, we will extend the services they offer to our existing customers”, says Fernando Cestari de Rizzo, CEO of Tupy.
New sectors of activity
The transaction enables Tupy to enter the Energy & Decarbonization sector, providing gensets for agribusiness and other applications. There is an engineering team prepared to adapt gensets and commercial vehicles to the use of biogas, biomethane, biodiesel, natural gas and hydrogen, ensuring safety and high performance, in a process developed, certified and guaranteed by the MWM factory.
“The use of biogas and biomethane for electricity generation and as fuel for fleets of trucks, buses and agricultural tractors is the main route for the decarbonization of the exporting industries of proteins, dairy products, sugar and ethanol. The production of biogas in the country is inherent to the size of Brazilian agribusiness. It will also be used, to a large extent, as fuel for the production of electricity on rural properties through electric gensets developed and manufactured by MWM”, explains José Eduardo Luzzi, MWM CEO.
This business vision has absolute synergy with the initiatives announced by Tupy Tech over the past year, including: development of materials, geometries and machining of components suitable for hydrogen as fuel and for hybrid passenger cars running on ethanol or gasoline; solutions for recycling and reuse of lithium-ion batteries.
The acquisition also marks Tupy’s entry into the engine spare parts and aftermarket sector in Brazil. With more than 600 points of sale and around 300 accredited and trained maintenance centers throughout the country, MWM has a strong presence in the distribution of parts to the national fleet of diesel and gas engines, also serving its national distribution channel for gensets.
The existing workshops benefits another business of the company: maritime, since MWM offers a wide range of solutions and equipment for marine propulsion and electricity generation for leisure and work vessels, with its own products or those of partners internationally recognized.
The transaction is estimated at BRL 865 million, subject to customary adjustments, which will be paid by Tupy after closing. The acquisition will be submitted for approval by the Brazilian antitrust authority.
Brazilian multinational that develops and produces structural components in cast iron of high geometric and metallurgical complexity. These engineering solutions are applied in the transport, infrastructure, agribusiness and energy generation sectors and contribute to people’s quality of life, promoting access to health, basic sanitation, drinking water, food production and distribution, global trade. The technological innovation involved in the production and creation of these pieces is the company’s specialty, in its more than 80 years of history. Its production is concentrated in Brazilian factories, in Betim/MG, Joinville/SC and Mauá/SP, and abroad, in the cities of Aveiro, in Portugal, and in Saltillo and Ramos Arizpe, in Mexico. In addition, it has commercial offices in Germany, Brazil, USA and Italy.