Troisdorf, Germany-based extrusion equipment manufacturer Reifenhäuser Group acquired a majority stake in Kdesign GmbH, a manufacturer of air cooling rings and measuring systems for blown film extrusion lines, located just 20 minutes away from its headquarters.
In the deal closing April 2, Reifenhäuser expands its in-house expertise in cooling, controlling, measuring and calibrating blown films while Kdesign gains access to a large international service network and what is described by the acquirer as the world's largest privately run research and development center for plastics extrusion.
Founded in 1911, Reifenhäuser's technology is used to produce films, nonwovens, monofilaments and wood polymer composites.
The family-owned company announced major investments in February, including plans to spend about $8 million (7 million euros) on new construction and equipment at its Troisdorf over five years.
In all, Reifenhäuser Group officials have said they plan to spend $47 million to $53 million (40 million to 45 million euros) "for growth measures" at its sites in Germany and in Wichita, Kan., but did not give a timeline.
Terms of the deal with Königswinter-based Kdesign, a specialist for gauge control, film cooling and guiding systems for blown film extrusion lines, were not disclosed.
Kdesign will remain an independent company within Reifenhäuser, according to a news release. Business and customer relationships will continue unchanged with Joachim Lange and Richard Zimmermann continuing to head the business as managing directors, the release also says.
Reifenhäuser Group CEO Bernd Reifenhäuser sees opportunities for both companies and their customers as two specialists join forces.
"In the blown film production process, cooling and controlling have a decisive impact on the quality of the end product. Our colleagues at Kdesign already offer the best technology on the market for this, which we are now bringing together with our extrusion technology," Reifenhäuser said in the release. "Customers will benefit from the ideal pairing of cooling expertise and specialist knowledge in hot parts. From now on, we can perfectly harmonize our products for optimum performance and together we can develop technologies more quickly."
Zimmermann agreed, adding: "We will be able to be closer to our customers in the future and have better development opportunities. … We are looking forward to working together and having a close personal exchange."