While investors have approached the automotive sector cautiously for many years, AURELIUS saw an opportunity in 2024 to create value through transformation. Its carve-out of Muviq from Dayco illustrates the power of operational improvement through expertise and graft, with the business today an independent and resilient supplier fit for the future.

Key takeaways

• AURELIUS acquired Muviq because it saw value in a complex automotive carve-out that other investors shied away from.
• The business was rebuilt through the creation of standalone capabilities, operational restructuring and sharper strategic focus.
• Muviq has now shifted from stabilisation to growth, combining targeted product development with acquisitions such as Winkelmann Automotive Poland.

AURELIUS’ acquisition of Muviq from US-headquartered tier-1 automotive supplier Dayco in May 2024 was not a straightforward investment. The business was in a sector facing structural change owing to electrification, regulatory uncertainty and shifting customer demand. It had experienced a sharp deterioration in trading conditions relative to expectations, and it required a complex separation from a large, multinational group. But beneath the complexity, AURELIUS spotted a global business with rich engineering expertise, strong customer relationships, high entry barriers and products critical to vehicle performance. AURELIUS’ experience carrying out complex carve-outs and effecting operational improvements gave it conviction to go ahead.

Why AURELIUS invested in Muviq

The opportunity came about in 2023, at a time when the future of internal combustion engines was more uncertain than ever owing to electrification.

“The sector became more attractive to us because there was so much uncertainty and transformation happening,” says Jens Knoell, Senior Managing Director at AURELIUS WaterRise. “We saw opportunity for our resources and experience to help the business adapt.”

Muviq specialises in vibration-control technologies, supplying components that reduce noise, vibration and harshness across passenger, commercial and off-highway applications. These components are critical and designed into platforms years before production begins, creating long-standing customer relationships.

These valuable relationships and Muviq’s engineering expertise appealed to AURELIUS – but other investors shied away from the complexity of carving it out of Dayco, and from exposure to a sector undergoing major disruption. Their reluctance was AURELIUS’ gain as it saw an opportunity to acquire the high-potential business at an attractive valuation, and to apply its operational expertise.

Rebuilding Muviq as an independent business

The journey proved more complex than initially anticipated. Between signing in December 2023 and closing in May 2024, customer demand had weakened significantly, and profitability expectations fallen sharply.

“The business we ended up acquiring looked very different from the one we had signed up for only months earlier. But after constructive discussions with Dayco, we were able to close the deal,” says Benjamin Laufer, Managing Director in AURELIUS’ investment team.

The first task was to establish Muviq as a standalone company. Like many carve-outs, the business relied heavily on systems, processes and infrastructure provided by its corporate parent. But on this occasion, there were eight production sites in seven countries across four continents. The complexity was enormous.

AURELIUS brought in its experience to help management separate IT systems, establish independent reporting processes and implement more robust forecasting, budgeting and cashflow management. The business was also rebranded from Dayco Propulsion Solutions to Muviq.

Worsening trading conditions saw profitability fall further, by roughly a third versus original expectations, forcing focus to shift from strategy and growth initially to restructuring and stabilisation.

Stabilising through focus

Muviq had previously pursued a range of development projects, such as an initiative related to e-bikes, but this diluted focus had become detrimental to the company’s core strengths. So AURELIUS and management shifted gears to concentrate resources where Muviq could genuinely differentiate itself. Overhead functions were removed and streamlined, while engineering and R&D resources were refocused on areas where Muviq had competitive advantages.

“Muviq has always been a mechanical engineering business,” says Karl Hammer, Muviq’s Managing Director for Light Vehicles. “We looked at some of these projects and decided we didn’t have a right to play there. The priority became bringing the business back to its core.”

Driving operational improvement

Improving operational efficiency was another priority.A substantial procurement programme, including changes to warehouse operations in North America that shortened lead times, plus other supplier-related initiatives, helped reduce costs.

The team also engaged customers in one-to-one discussions to refine its value proposition, explaining changes in market conditions and fluctuating demand. “Customers understand the importance of having suppliers that remain healthy and able to deliver,” says Dominik Betz, Director Strategy & Transformation at AURELIUS WaterRise. “These were collaborative discussions focused on maintaining and solidifying long-term relationships.”

While the efforts moved Muviq in the right direction, a challenging 2024 had created cash constraints. “We understood very clearly what the company needed, and stepped in to support. We used our networks to help,” Dominik recalls, describing the credit lines and factoring they helped put into place in spring 2025.

Shifting from stabilisation to growth

By the second quarter of 2025, Muviq was able to shift its focus from fire-fighting towards growth, with product development a key focus.

The Muviq team identified new opportunities for its vibration-control expertise in the electric vehicle space. One involved rubber mounting systems that use similar materials, engineering processes and capabilities to the company’s existing products, making it a natural area to explore for expansion.

At the same time, AURELIUS pursued inorganic growth opportunities. The acquisition of Winkelmann Automotive Poland in 2025 brought different customers and synergistic expertise. “The acquisition was about building scale and capability in specialised automotive niches where engineering expertise, customer relationships and operational excellence really matter. Today, less than a year later, operations are fully integrated,” Dominik comments.

With the hard yards behind them, Muviq is now executing against its growth plan. “We’re winning new customers, developing new products and looking systematically at opportunities that could strengthen the business further,” says Karl.

Only two years after AURELIUS bought a business that appeared stuck in a downward spiral, Muviq has been stabilised and is more focused on its strengths as well as being operationally much more efficient. “With a strong foundation and new products in the pipeline, our outlook for growth is promising,” Karl concludes.