Private equity firm acquires KraussMaffei

Canada-based Onex Corp. has agreed to acquire plastics and composites machinery manufacturer KraussMaffei AG for $568 million.

Private equite firm Onex Corp. (Toronto, Ontario, Canada) announced on Sept. 26 that it has agreed to acquire KraussMaffei AG (Munich, Germany), a manufacturer of plastic and rubber processing equipment, for €568 million. The transaction is anticipated to close by March 31, 2013, subject to customary conditions and regulatory approvals.

KraussMaffei is a major designer and manufacturer of machinery and systems for the processing of plastics and rubber, including composite parts and structures. The company manufactures machinery for the injection molding, extrusion and reaction process segments. KraussMaffei has approximately 4,000 employees and operates manufacturing facilities in Germany, Switzerland, Slovakia and China. For the 12 months ended June 30, 2012, the company generated approximately €1.0 billion in revenues.

“KraussMaffei is a global leader in each of its three segments, with a decades-long reputation for technology and quality,” says David Mansell, an Onex managing director. “We look forward to working with Jan Siebert and his management team to further build on the company’s market- leading position.”

“We’re very pleased to be partnering with Onex given its track record and experience in our industry,” says Jan Siebert, ehief executive officer of KraussMaffei. “With Onex' backing, we intend to strengthen our global presence and build on our success at the high-end of the industry.”

“KraussMaffei is the first European-based investment for Onex Partners III, and, like many of our existing businesses, serves markets globally,” says Tony Morgan, a managing director in Onex’ London office. “I look forward to working with my colleagues to find similar investment opportunities as we build our business in Europe.”

Onex Partners III, Onex’ $4.7 billion flagship private equity fund, will make an equity investment of approximately $340 million, of which Onex’ share is about $86 million as a limited partner in the fund. Including this transaction and the recently announced acquisition of SGS International, the fund will be approximately 60 percent invested.