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

2014 US machinery shipments up 6 percent

November 25, 2014 5:17 pm ET

Through the first nine months of 2014 U.S. shipments of primary plastics equipment — for injection molding, blow molding and extrusion —...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Taipei Plas vandal and German firm trade lawsuits

November 25, 2014 1:26 pm ET

Taiwan businessman Karma Tang, who splashed red paint at German firm Baumüller GmbH's Taipei Plas booth, is in a messy legal battle.    More

Image

Auxiliary equipment maker Ross expands in India

November 25, 2014 1:12 pm ET

U.S. auxiliary equipment maker Charles Ross & Son Co. is expanding in India, opening a new plant early next year in Pune.    More

Image

Uni Cap to build cap molding plant in Jordan

November 25, 2014 12:57 pm ET

The Persian Gulf's largest molder of caps and closures is investing $10 million in a new factory near Amman, Jordan, as part of an effort to boost its...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

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 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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events