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
Companies & Associations

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

Reifenhäuser acquires German spinneret company Enka Tecnica

April 17, 2015 9:31 am ET

Germany-based Reifenhäuser GmbH & Co. KG, a major manufacturer of extrusion equipment, has announced that it is acquiring Enka Tecnica GmbH, a German ...    More

Image

Spain's Grupo Antolin to buy Magna's interiors business

April 16, 2015 12:33 pm ET

Spain's Grupo Antolin has reached an agreement to purchase Canadian auto supply giant Magna International Inc.'s interiors unit in a deal valued at...    More

Image

Madison buys Ferry Industries

April 16, 2015 5:22 pm ET

Ferry Industries, the largest manufacturer of rotational molding machinery, was purchased by Madison Industries, a Chicago holding company that is...    More

Image

Caplugs gets new private equity owner

April 16, 2015 11:17 am ET

Caplugs, a major producer of caps, plugs, tubing, netting and other protective goods for industry, has a new owner.    More

Image

A. Schulman, Citadel discuss the $800 million deal

April 15, 2015 1:45 pm ET

The $800 million match of materials maker A. Schulman Inc. and Citadel Plastics felt good from the start. “Everything in our first meetings show...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events