Brown Machine Group (BMG) in Beaverton, Mich., has acquired GN Thermoforming Equipment in Chester, Nova Scotia, by purchasing 100 percent of the stock.
The acquisition significantly expands BMG's thermoforming product offering and gives the company greater access to global customers in the food packaging industry and the industrial and medical markets, according to Bob Gordert, BMG vice president of sales and marketing.
"While GN has a long history and global presence in the food packaging market, it has diversified nicely over the past six years," Gordert said in an email.
No financial terms were disclosed, and Gordert would not identify the seller. GN Thermoforming was founded in 1981 by Georg Nemeskeri, who holds several patents and was named the 2002 Industry Leader of the Year by the Canadian Plastics Industry Association.
GN's machines are adept at quick change-overs and have an outstanding reputation for quality, according to BMG CEO Greg Wolf.
"GN Thermoforming Equipment's unique technology and talent significantly increase the scope of BMG's offering to reach small and medium size thermoforming customers," Wolf said in the release.
GN specializes in contact heat thermoformers and form-cut-stack thermoforming machines.
The acquired company also has a sales and service center in the Czech Republic and representatives worldwide.
"BMG has a significant sales and service footprint throughout North America, whereas over half of GN's sales are outside of North America," Wolf said. "This acquisition greatly expands market access and growth for both entities."
With the deal, Brown continues its consolidation of the sector. Founded in 1952, the company offers a line of continuous and cut-sheet thermoforming equipment, automation systems and provides related services
"BMG's proven expertise in growth through acquisition is an exciting and significant step for GN Thermoforming Equipment and our employees," GN President Jerome Romkey said in the release. "Bringing our core technology, equipment and service offerings together, while expanding the overall scope of our customer base, is the next logical step for both companies."
GN will continue to operate and manufacture under its current name within BMG and remain headquartered in Chester. GN employs about 100 people in Canada and the Czech Republic, Gordert said, adding BMG has "no immediate plans of restructuring."
"We are very excited to kick off the cross training of the sales and service teams, to enhance the sales efforts and customer reach of BMG's integrated offerings," Gordert said.
BMG offers product lines manufactured by Brown Machine, Lyle Industries, Nalle Automation Systems, Freeman Company and aXatronics in addition to GN Thermoforming Equipment.
BMG acquired aXatronics in May 2020. The company is open to more deals, Gordert said.
"BMG's focus is to be the industry-leader by delivering innovation, sustainable technology, and turn-key integrated systems for the global packaging industry," he added. "Today's environment demands machinery systems that empower companies to be competitive in their markets. To this end, one of BMG's key growth strategies is to focus on expanding automation into new markets, including GN's product lines and offerings, while offering best-in-class plastic processing equipment."
The sale of GN apparently ends a chapter for Georg Nemeskeri, whose plastics industry career started in 1969. He stepped away from active involvement at GN in 2015, after he was arrested and charged with possession of child pornography.
Nemeskeri pleaded guilty in Nova Scotia provincial court in October 2015, and he was sentenced to two years in Canadian federal prison.
At the time of his arrest, company officials told Plastics News that Nemeskeri was still the primary shareholder of GN, but that he had stepped away from direct involvement with day-to-day operations.