Netstal Machinery moving to Kentucky

By Bill Bregar
Senior Staff Reporter

Published: September 21, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Injection Molding, Machinery

MUNICH (Updated Sept. 21, 3 p.m. ET) — News reports, backed up by several industry sources, say that the sale of KraussMaffei Group — the world’s largest manufacturer of plastics equipment — could be coming soon by Madison Capital Partners.

Reuters and the German financial press are reporting an undisclosed Chinese machinery group is poised to buy KraussMaffei from Madison Capital, a Chicago-based investment firm. Two industry sources told Plastics News that a U.S. entity — probably a private equity company — was still in the running as of Sept. 21.

The field appears to be narrowing. Another source said that two or three private equity firms have dropped out of the process in recent weeks.

Regardless of who is the ultimate buyer, the sources said negotiations appear to be in the final stages.

“It’s more than smoke going on. I really do expect a sale in two or three weeks,” said one industry source. Another said: “Clearly, they’re on the block.”

The knowledgeable industry sources spoke to Plastics News on the condition they would not be identified.

Reuters cited “two people close to the transaction,” who were not identified in its Sept. 20 story.

The news service does not name the possible Chinese buyer, but lists three Chinese companies that were “initially interested” but are no longer are in talks with Madison Capital: major plastics machinery players Haitian International Holdings Ltd. and Chen Hsong Holdings Ltd., and a third company, called Long Hong.

Meanwhile, sources said that Netstal Machinery Inc., the U.S. operation of KM Group unit Netstal-Maschinen AG, is relocating from Devens, Mass., to Florence, Ky. — and moving in with KraussMaffei Corp., the group’s North American headquarters. Netstal has already moved its parts warehouse to Florence.

Netstal and KraussMaffei are expected to formally announce the move soon.

Earlier this year, officials of Munich-based KraussMaffei Group and Netstal, of Näfels, Switzerland, said they were combining their marketing functions and would pool their engineering efforts. The two companies are maintaining an independent market presence and manufacturing operations.

Some industry observers saw that move as a way to boost finances before a sale.

KraussMaffei employs 4,000 worldwide, building injection presses, extruders and reaction injection molding machines. The group makes well-known brands of KraussMaffei, Berstorff and Netstal. KraussMaffei Group generated record order income of 1.1 billion euros ($1.5 billion) for its fiscal year ended Sept. 30, 2011. Financial results are not available for this fiscal year.

Reuters reported that Madison Capital hopes to get as much as 700 million euros ($910 million) for KraussMaffei Group. That is the same figure Bloomberg reported in a story three months ago.

Press reports say Madison Capital has retained Goldman Sachs.

Madison Capital bought the plastics machinery group in 2006. That’s six years ago, a fairly long time for private equity ownership, which has prompted industry observers to wonder when Madison Capital would cash out and sell KM Group, to pay back investors. Machinery sales are rebounding from the Great Recession and capital is freeing up.

Contacted about the Reuters report, KM spokesman Imre Szerdahelyi said company officials “don’t comment on rumors.”

Larry Gies, president and CEO of Madison Capital, did not return a telephone call seeking comment.

Officials of KM and Madison Capital also have declined to comment on past media reports.

A German financial newspaper reported in 2008 that Madison Capital was preparing KM Group for an initial public offering. In mid-June of this year, Bloomberg reported that Madison Capital was exploring the sale of KraussMaffei Group, again citing undisclosed sources.


Comments

Netstal Machinery moving to Kentucky

By Bill Bregar
Senior Staff Reporter

Published: September 21, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Munson Machinery expanding assembly, testing operations

July 22, 2014 2:02 pm ET

Munson Machinery Co. Inc. is expanding its headquarters factory by about one-third in Utica, N.Y., where the company makes mixing, blending and size-...    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Windmöller & Hölscher looking to continued growth in China

July 21, 2014 3:40 pm ET

With 2013 global sales of 600 million euros, China has grown into an important export market for Windmöller & Hölscher KG, second only to the United S...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events