ChemChina buys KraussMaffei for $1 billion

KraussMaffei Group’s headquarters will remain in Munich and the operating and corporate responsibility for the company will stay in Europe.

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The state-owned chemical group China National Chemical Corp. (ChemChina, Beijing, China)
 has agreed to acquire KraussMaffei Group (Munich, Germany) from Onex Corp., a Toronto-based private-equity firm, for $1 billion. ChemChina together with GUOXIN International Investment corp. and AGIC Capital will make this acquisition.

“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.
“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.”

 “Following Onex’s acquisition in late 2012 KraussMaffei Group has achieved strong growth and had a very successful year in 2015. As part of ChemChina, we expect to considerably accelerate our growth strategy, especially in China and Asia, and to further strengthen the Company in Germany and Europe,” Stieler said. As a result of the transaction, the KraussMaffei Group will be able to accelerate its planned expansion in China.

KraussMaffei Group’s headquarters will remain in Munich and the operating and corporate responsibility for the company will stay in Europe. The KraussMaffei Group will continue to operate as a German company with a Supervisory Board based on co-determination. 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 €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.