ChemChina to Acquire KraussMaffei Group
China’s leading chemicals group, China National Chemical Corporation (“ChemChina”), has agreed to acquire KraussMaffei Group from Onex Corporation for a cash enterprise value of EUR 925 million. The transaction is subject to closing conditions including customary regulatory approvals. The transaction is expected to accelerate the growth of the company considerably in light of potential business synergies. ChemChina will make this acquisition together with Guoxin International Investment Corporation and Agic Capital.
“With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our company for many years,” said Frank Stieler, CEO of the KraussMaffei Group. The KraussMaffei Group will continue to operate in its current corporate structure. In early 2013, the Canadian venture capital company Onex took over KraussMaffei from the then-owner Madison Capital for EUR 568 million.
“We are strengthening our company with one of the leading global engineering groups, encompassing a 178-year corporate history. In doing so, we expect that KraussMaffei Group will maintain its identity and independence,” said Jianxin Ren, Chairman of ChemChina. “We are investing in the Company’s strong management team and its technological expertise, which we believe will benefit our Chinese subsidiaries and position the chemical machinery business of ChemChina, which build and sell equipment for the rubber and chemical industry, to become a pioneer in achieving the “Made in China 2025” program which aims to enhance Chinese industry. The growth potential of the KraussMaffei Group is tremendous, especially through improved access to the Chinese market, which we can make possible. We expect trends in the automotive industry towards advanced manufacturing and lightweight components will provide a huge development opportunity for the high-end plastic injection molding industry. Together, ChemChina and the KraussMaffei Group will be well positioned for future growth,” added Jianxin Ren.
In China, KraussMaffei is expected to benefit in particular from the trend towards higher quality and sustainability. The machines and systems of the three brands - KraussMaffei, KraussMaffei Berstorff and Netstal - are especially suited to meet more challenging customer requirements. As a result of the transaction, the KraussMaffei Group will be able to accelerate its planned expansion in China. The KraussMaffei Group’s headquarters will remain in Munich and the operating and corporate responsibility for the company will stay in Europe. This applies in particular to production, technology, patents as well as research and development. The KraussMaffei Group will continue to operate as a German company with a Supervisory Board based on co-determination. All existing collective agreements and location-based commitments will remain unchanged. At present, the company has approximately 4,500 employees globally, of which 2,800 are based in Germany. The company intends to increase its workforce in 2016, including in Germany.
ChemChina is China’s largest chemicals group, having generated revenues of around EUR 37 billion in 2015 with approximately 140,000 employees, of whom 45,000 are located outside China. The group operates internationally and has a global expansion strategy, having acquired or invested in companies in Italy, France, Norway, the UK and Singapore in the last few years with the most recent acquisition being the high-end tire manufacturer Pirelli. Following Onex’s acquisition KraussMaffei Group has demonstrated sustained improvement in its financial and operational performance. In 2014, the Company generated revenues of approximately EUR 1.1 billion and is expected to achieve year-on-year revenue growth of approximately 10 % for 2015. According to Onex KraussMaffei lastly achieved annual earnings (Ebitda) of EUR 140 million.
The employee representatives and IG Metall welcome the planned change in ownership. “We consider the transaction as a significant opportunity for the KraussMaffei Group and its employees. We are confident that through further growth the existing jobs in Germany and Europe will be secured and expanded,” commented Peter Krahl, Chairman of the works council of the KraussMaffei Group.
KraussMaffei Technologies GmbH
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