Italy's Iveco Group to sell fire trucks unit to German fund Mutares

Truckmaker Iveco Group starts trading at Milan Bourse·Reuters
Reuters
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(Reuters) - Italian truck and bus maker Iveco Group said on Wednesday that it will sell its unit that produces firefighting vehicles to German private equity fund Mutares.

As a result of the transaction, the deal value for which was not disclosed, Iveco's 2024 results will be negatively impacted by about 115 million euros ($125.9 million) in the first quarter, according to the company.

In 2023, the unit Magirus accounted for about 2% of Iveco's revenue and recorded an adjusted loss before interest and taxes of 35 million euros.

Iveco, which was spun-off from farming and construction machine maker CNH Industrial, had started seeking a buyer for Magirus last year.

($1 = 0.9132 euros)

(Reporting by Devika Nair and Shivani Tanna in Bengaluru; Editing by Shounak Dasgupta)