Krones to acquire Swiss machine maker Netstal for EUR170 mn

German packaging and bottling supplier Krones says it plans to sign a final agreement in February 2024 to acquire Netstal Maschinen of Switzerland from ChemChina-owned KraussMaffei in Germany for EUR170 million. Following this, the transaction is subject to approval under the relevant antitrust legislation. Krones adds it expects the transaction to be completed within the first half of 2024.

Krones says it will finance the purchase with existing liquid funds, but also may take advantage of partial debt financing.

With a workforce of more than 500 employees, based in Naefels, Switzerland, Netstal is a supplier of injection moulding machines to the beverage market (PET preforms and caps) as well as to the medical and thin-wall packaging market. The company has already been a strategic partner of Krones in the past

In the 2023 fiscal year, Netstal reportedly generated revenue of more than EUR200 million. Krones adds the profitability of the company is currently below the Krones Group level but is expected to close this gap over the coming years. Netstal will be reported as part of the segment Filling and Packaging Technology.

The acquisition of Netstal is benefitting Krones on various dimensions. Netstal’s PET and cap businesses complement Krones’ product portfolio for the beverage market.

With respect to PET closed-loop solutions Krones then covers all technologies required from injection moulding to PET container production through to filling/packaging and recycling.

The medical and thin-wall packaging segments of Netstal support the Krones strategy to diversify into the medical/pharma market as well as into food and home-personal-care applications.

Krones has taken previous steps in this strategy of diversification including the 2018 acquisitions of MHT Mold & Hotrunner Technology of Germany, which builds PET preform injection moulds and hot-runner systems; and a 70% interest in Integrated Plastics Systems of Switzerland, which designs bottles and preforms and acts as a system integrator for PET preform injection moulding for beverage bottles.

When state-owned ChemChina acquired parent company of Netsal, KraussMaffei Group, in 2016, for about US$1 billion it was said to be the biggest-ever Chinese acquisition of a German company.

Lately, affected by the pandemic, Munich-based KraussMaffei has faced financial challenges and last year, announced the launch of an “adjustment and efficiency program to strengthen competitiveness,” as it said. None of the job cuts, it had said, involved manufacturing and assembly personnel.

It initiated measures to improve operational performance, to increase work efficiency, and to reduce the cost base. A restructuring of external corporate financing reportedly was successful and is supporting the planned adjustment and efficiency program, which includes the layoffs, it had advised last year.

Last year, KraussMaffei also relocated its headquarters and main plant from Munich-Allach to Parsdorf, Germany. The 250,000-sq-m plant is home to the company’s injection moulding and reaction processing, additive manufacturing, mechanical manufacturing, and automation production activities.

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