ChemChina to acquire KraussMaffei Group for €925million
Leading chemical group China National Chemical Corporation, or ChemChina, has agreed to acquire machinery manufacturer KraussMaffei Group from Onex Corporation for a cash enterprise value of 925 million euros. ChemChina’s acquisition of the KraussMaffei Group covers the German company’s three brands of products, including the KraussMaffei Berstorff range of extruders, roller head systems and cap strip systems for the tyre industry. The transaction is subject to closing conditions including customary regulatory approvals.
KraussMaffei Group CEO Frank Stieler describes the company’s new owner as a “strategic and long-term oriented investor who has been interested in our company for many years,” and the company reports that ChemChina intends to retain the current KraussMaffei corporate structure. This position has been confirmed by ChemChina chairman Ren Jianxin, who expressed his expectation that “KraussMaffei Group will maintain its identity and independence.”
Ren, who also serves as chairman of recently-acquired tyre maker Pirelli, added: “We are investing in the company’s strong management team and its technological expertise, which we believe will benefit our Chinese subsidiaries and position the chemical machinery business of ChemChina, which build and sell equipment for the rubber and chemical industry, to become a pioneer in achieving the ‘Made in China 2025’ programme which aims to enhance Chinese industry. The growth potential of the KraussMaffei Group is tremendous, especially through improved access to the Chinese market, which we can make possible. We expect trends in the automotive industry towards advanced manufacturing and lightweight components will provide a huge development opportunity for the high-end plastic injection moulding industry. Together, ChemChina and the KraussMaffei Group will be well positioned for future growth.”
The KraussMaffei Group’s headquarters will remain in Munich and the operating and corporate responsibility for the company will stay in Europe. This applies in particular to production, technology, patents as well as research and development. The KraussMaffei Group will continue to operate as a German company with a Supervisory Board based on co-determination. All existing collective agreements and location-based commitments will remain unchanged. At present, the company employs approximately 4,500 people around the globe and intends to increase its workforce in 2016.