China National Chemical Corporation (ChemChina), will acquire KraussMaffei Group from Onex Corporation (Onex) for a cash enterprise value of £691m (€925m)
ChemChina together with GUOXIN International Investment Corporation and AGIC Capital will make this acquisition of KraussMaffei, a company that manufactures machinery and systems for producing and processing plastics and rubber.
Frank Stieler, CEO of KraussMaffei, said: “With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our company for many years.”
KraussMaffei will continue to operate in its current corporate structure according to ChemChina.
Jianxin Ren, chairman of ChemChina, said: “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 will maintain its identity and independence.
“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.
“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 towards advanced manufacturing and lightweight components will provide a huge development opportunity for the high-end plastic injection molding industry.”
Stieler said: “As part of ChemChina we expect to considerably accelerate our growth strategy, especially in China and Asia and to further strengthen the company in Germany and Europe.”
KraussMaffei will continue to operate as a German company with a Supervisory Board based on co-determination.
Its 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, ChemChina said.
The transaction is subject to closing conditions including customary regulatory approvals.