China National Chemical Corporation (CHEMCHINA) and its holding company China National Chemical Equipment Co., Ltd. (CNCE) planned to purchase 100% shares of Krauss- Maffei Group (KM) subordinated to Canadian Onex. Once passing the approval of relevant anti-monopoly organs and supervision organs, this acquisition would be completed at the end of June this year. Meanwhile, this acquisition will also be- come the largest investment in Germany for Chinese enterprise by now if it succeeds.
KM Group ranks top in the global rubber machinery industry. Its corporate structure and business will remain un- changed after this acquisition and its headquarter is still in Mu- nich. This acquisition can accelerate KM Group’s expansion project in Chinese market, however, the operation and cor- porate responsibility of GM Group are still in Europe. Frank Stieler, CEO of KM Group, predicted that KM Group would greatly accelerate its growth strategy, especially in Chinese and Asian market, and would also further promote the business in German and European market after joining CHEMCHINA.
According to CHEMCHINA, its holding company CNCE and KM Group are highly complementary in product assortment and market. However, an announcement of Tianhua Chemical Engineering Co., Ltd., a subsidiary of CHEMCHI- NA, pointed out that there was some competition existing in the business of plastic processing technology (extruding machine and reaction process technique) between KM Group and CNCE. But CHEMCHINA would regulate the horizontal competition after this acquisition.
Canadian Onex purchased KM Group for EUR 568 Million from Madison Capital Partners in 2012. Therefore, with CHEMCHINA’s purchasing price of EUR 925 Million, Canadian Onex will achieve 62% return from the acquisition.
Founded in 1838, with three major brands, including KraussMaffei, KraussMaffei Berstorff and Netstal, KM can supply rubber & plastic machinery equipment and integration solution. According to KM report, its amount of sales reached EUR 576 Million in Jan.-Jun. 2015 and 1.1 Billion in 2014.
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