 "ChemChina acquires KraussMaffei Group for $ 1 bn")
China National Chemical Corporation (ChemChina) has agreed to acquire KraussMaffei Group, the German manufacturer of machines and systems used in the production of plastics and rubber products, from Onex Corporation for Euro 925 million (or about $ 1.007 billion). The transaction is expected to accelerate the growth of KraussMaffei considerably in light of potential business synergies. ChemChina together with Guoxin International Investment Corporation and AGIC Capital will make this acquisition.
“With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our Company for many years,” said Frank Stieler, CEO of the KraussMaffei Group. The KraussMaffei Group will continue to operate in its current corporate structure.
“We are strengthening our company with one of the leading global engineering groups, encompassing a 178-year corporate history. In doing so, we expect that KraussMaffei Group will maintain its identity and independence,” said Jianxin Ren, Chairman of ChemChina.
Following Onex’s acquisition in late 2012, KraussMaffei Group has achieved strong growth and had a very successful year in 2015. As part of ChemChina, KraussMaffei Group is expected to considerably accelerate its growth strategy, especially in China and Asia, and to further strengthen the company in Germany and Europe. In China, KraussMaffei is expected to benefit in particular from the trend towards higher quality and sustainability. The machines and systems of the three brands - KraussMaffei, KraussMaffei Berstorff and Netstal - are especially suited to meet more challenging customer requirements. As a result of the transaction, the KraussMaffei Group will be able to accelerate its planned expansion in China.
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 has approximately 4,500 employees globally, of which 2,800 are based in Germany. KraussMaffei intends to increase its workforce in 2016, including in Germany.
“With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our Company for many years,” said Frank Stieler, CEO of the KraussMaffei Group. The KraussMaffei Group will continue to operate in its current corporate structure.
“We are strengthening our company with one of the leading global engineering groups, encompassing a 178-year corporate history. In doing so, we expect that KraussMaffei Group will maintain its identity and independence,” said Jianxin Ren, Chairman of ChemChina.
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The acquisition of KraussMaffei is expected to help ChemChina, which build and sell equipment for the rubber and chemical industry, to become a pioneer in achieving the ‘Made in China 2025’ program 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,” added Jianxin Ren.
Following Onex’s acquisition in late 2012, KraussMaffei Group has achieved strong growth and had a very successful year in 2015. As part of ChemChina, KraussMaffei Group is expected to considerably accelerate its growth strategy, especially in China and Asia, and to further strengthen the company in Germany and Europe. In China, KraussMaffei is expected to benefit in particular from the trend towards higher quality and sustainability. The machines and systems of the three brands - KraussMaffei, KraussMaffei Berstorff and Netstal - are especially suited to meet more challenging customer requirements. As a result of the transaction, the KraussMaffei Group will be able to accelerate its planned expansion in China.
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 has approximately 4,500 employees globally, of which 2,800 are based in Germany. KraussMaffei intends to increase its workforce in 2016, including in Germany.