Husky Injection Molding Systems Ltd. is buying leading Austrian closure mold maker KTW Group, enabling it to extend its turnkey manufacturing system business in that growing niche market.
The firms did not disclose the value of the deal, which is expected to close in May. Once it is complete, Husky will offer KTW-brand molds as part of fully integrated turnkey closure manufacturing systems, including mold, machine, hot runner, temperature controller and a range of consulting and after-sales services.
Husky and KTW have worked very closely to develop closure manufacturing solutions that enhance productivity, eliminate waste and improve part quality for our customers, Husky President and CEO John Galt said in a statement.
However, to meet the increasing expectations of our customers, we realized that even closer collaboration would be needed in developing the core elements of the closure system. Through this acquisition, we will be able to work with the many talented people of KTW as one team to deliver more value to closure manufacturers in both emerging and established markets, Galt said.
Once the deal closes, Anja and Claus Ziegler, managing directors of Waidhofen, Austria-based KTW, will continue to be closely involved in leading the business, which has manufacturing operations in Austria, Germany and the Czech Republic. KTW's official name is Kunststofftechnik Waidhofen a.d. Thaya GmbH.
Becoming part of Husky will allow us to incorporate KTW technologies into the industry's most advanced closure molding systems, while also gaining the advantage of Husky's extensive sales and service network to better support our increasingly global customer base, the Zieglers said in a joint statement.
Aside from its main closure mold manufacturing operations, KTW also operates a molding company, Injectoplast, producing beverage closures at Waidhofen. Husky said it will carry out a strategic review of that business to avoid any potential conflict with its own customers.
Established in 1979, KTW is a leading player in the international closure mold industry. The group employs more than 350 across its three locations and manufactures single-face, stack and cube molds up to 128 cavities.
KTW is active globally. Europe accounts for around 50 percent of its business; North America, 20 percent. It is particularly well-known for its flip-top closure molds, as well as for molds for producing closures for the beverage and detergents markets.
Bolton, Ontario-based Husky is a major supplier of plastics injection molding equipment. The firm, which is 98 percent owned by Canadian private equity group Onex, is the world's leading maker of PET preform production systems. It posted sales for 2009 of around $994 million.
Earlier this year North American financial media reported that Onex was planning to sell the Husky business. Onex issued a statement at the time stating that it had not made a decision to sell Husky and has not received any offers for the acquisition of the company.