Maag to acquire Gala Industries; expands to the compounding sector

Switzerland-based Maag, a manufacturer of gear pumps, pelletising systems, and filtration systems for demanding applications in the plastics, chemical, and petrochemical industries, is to acquire US-based Gala Industries, a manufacturer of underwater pelletising systems, centrifugal pellet dryers and process solutions for the plastics industry.

The addition of Gala's innovative products will further enhance Maag's position in underwater pelletisers and centrifugal dryers and globally position the combined company as a provider of equipment for the polymer and compounding industry. Both companies will go to the market under their existing brand names, which include Maag Pump Systems, Automatik Pelletizing Systems and Gala Industries. The combined business will be headed by Ueli Thuerig, President of Maag.

"It is exciting to consider the breadth of customer solutions that will result from leveraging the products and strengths of Maag and Gala," explained Ueli Thuerig. "Optimal market coverage will be provided with customer specific solutions, quick service and focused engineering."

David E. Bryan, CEO of Gala Industries, noted, "Maag and Gala fit perfectly together. This is a unique opportunity to expand our suite of services, create enhanced professional opportunities and increase our geographic reach which will further enhance our profitability."

In the coming weeks, Maag and Gala say they will be focused on seamlessly integrating their teams, to better serve their customers through vertically integrated product offerings and services. Gala will become part of the Maag business within the Fluids segment.

Maag, owned by Dover Corporation, was established in 2010 through the merger of Maag Pump Systems AG with Maag Automatik GmbH. Dover is a diversified global manufacturer with annual revenues of approximately US$7 billion. It also recently acquired Italy-based JK Group SPA, a manufacturer of innovative inks and consumables serving the fast-growing digital textile printing markets Though terms of the Maag acquisition were not disclosed, Dover said the combined purchase price of JK and Gala will be approximately US$520 million. JK and Gala are expected to have combined 2016 revenue of about US$165 million.

Maag manufactures in Switzerland, Germany, Italy, US and China, with additional sales offices in France, Singapore, Taiwan, Malaysia, India and Brazil. Gala Industries manufactures in the US and Germany, with a sales office in Thailand.