Tupy concludes the acquisition of MWM do Brasil and announces its entry into new sectors

The combination will promote the integration of machining, assembly and engineering services, in addition to increasing decarbonization opportunities and inserting Tupy into the energy, after market and maritime segments.

Tupy S.A. (“Tupy”), a Brazilian multinational dedicated to the development and manufacturing of structural components for capital goods, announces that it has concluded the acquisition of MWM do Brasil for R$855 million.

The transaction is in line with the growth strategy of both companies not only in their current businesses – as they will add product value – but also in promoting feasible decarbonization solutions. Tupy, a company with 84 years of operations, specializes in structural components applied to cargo transport (in all modalities), agricultural machinery, infrastructure and energy generation. MWM manufactures third-party engines under manufacturing contracts, covering machining, assembly, calibration, technical validation and engineering services.

With an extensive client base and driven by the recently acquired operations in Portugal and Brazil, Tupy provides components for the world´s main manufacturers of trucks, agricultural and construction machinery, and engines. With this acquisition, the Company expects it will expand the services provided by MWM to all its clients.

“Together, MWM and Tupy have become a unique company in the market, bringing together in a single supplier casting, machining, assembly and technical validation services, in addition to associated engineering activities. We are integrating ourselves into a company with great intellectual and technological capital that is made up of a seasoned leadership, with an entrepreneurial culture and high technical credibility in the industry,” explained Fernando Cestari de Rizzo, the CEO of Tupy.

New operating sectors

With the acquisition, Tupy is entering the Energy and Decarbonization sector, providing electricity gensets for agribusiness and other industries.
The Company has an engineering team ready to adapt generators and commercial vehicles to use biogas, biomethane, biodiesel, natural gas and hydrogen, ensuring safety and high performance under a process developed, certified and guaranteed by the MWM’s factory.

“The use of biogas and biomethane to generate electricity and fuel fleets of trucks, buses, and agricultural tractors is the key way to decarbonize the Brazilian protein, dairy, sugar, and ethanol export industries. The production of biogas in Brazil is inherent in the size of the country’s agribusiness. This fuel will also be used, to a large extent, by gensets developed and manufactured by MWM to produce electricity in rural properties,” stated José Eduardo Luzzi, the CEO of MWM.

This business vision has full synergy with the initiatives announced by Tupy over the past year, such as the development of materials, geometries and machining of components that can appropriately use hydrogen as fuel, as well as ethanol or gasoline-powered passenger cars, in addition to recycling and reuse solutions for lithium-ion batteries.

The aftermarket and the accredited maintenance shops benefit the company’s maritime business, as MWM offers a wide range of maritime propulsion and electricity generation solutions and equipment to leisure and work boats, with products produced by the company or by internationally recognized partners.

About TUPY

A Brazilian multinational company that designs and manufactures cast iron structural components with highly complex geometry and metallurgy. These engineering solutions are applied to the transportation, infrastructure, agribusiness, and energy generation sectors, contributing to the quality of life of people, promoting access to health, basic sanitation, drinking water, food production and distribution, and the global trade. The production is concentrated in the Brazilian factories located in Betim (MG) and Joinville (SC), and abroad, in the cities of Aveiro, in Portugal, and Saltillo, and Ramos Arizpe, in Mexico. The Company also has commercial offices in Brazil, Germany, the Netherlands, Italy, and the U.S. www.tupy.com.br

About MWM

MWM has a plant located in São Paulo (SP) and a parts distribution center in Jundiaí (SP). The company’s products serve the vehicle, agriculture, manufacturing, energy generation, and maritime segments. MWM also operates in the energy generation segment, with diesel gensets ranging from 10 to 1,250 kVA at 50 and 60 Hz, and natural gas gensets ranging from 80 to 477 kVA at 50 and 60 Hz. The Company is strategically based in the Mercosur region in order to serve regional clients and export products worldwide. MWM currently exports to over 45 countries around the world.

Media Relations

Edelman: TUPY@edelman.com