- Together with ChemChina, and Guoxin, AGIC to acquire KraussMaffei Group for EUR 925 million; largest outbound investment from China into Germany
- Transaction expected to accelerate the growth of KraussMaffei Group in China and beyond
- First investment from AGIC, the Asia-European private equity fund specialized in technology investment, led by Henry Cai
(Hong Kong, 11 January, 2016) Asian-European private equity firm AGIC Capital (“AGIC”) today announced its first investment. As part of an investment consortium with China’s largest chemicals group China National Chemical Corporation (“ChemChina”) and GUOXIN International Investment Corporation (“Guoxin”), AGIC participated in the acquisition of KraussMaffei Group (the “Company”) from Onex Corporation (“Onex”) for a cash enterprise value of EUR 925 million. KraussMaffei Group is a leading global manufacturer of high-quality machinery and systems for producing and processing plastics and rubber. The transaction is expected to accelerate the growth of the Company considerably and is subject to closing conditions including certain customary regulatory approvals.
Landmark investment for AGIC
“The joint acquisition of KraussMaffei Group marks our first investment. We are very excited about the investment as it truly reflects AGIC’s investment philosophy and ongoing strategy,” said Henry Cai, Chairman of AGIC. “KraussMaffei Group is a prime example of an excellent German industry player. It is the global technology and innovation leader in its markets and its brands have excellent growth prospects in China. We see vast potential for the injection molding and equipment manufacturing industries not just in China, but globally, and believe that in cooperation with AGIC, ChemChina and Guoxin, KraussMaffei Group will be best positioned to exploit this opportunity.”
Helping KraussMaffei Group companies succeed in the Asian market
AGIC will work closely with other shareholders and KraussMaffei Group’s management to support the company’s expansion in Asia. “KraussMaffei Group’s developments in new materials such as carbon fibers stand to benefit from China’s objective to advance its industry towards high-end manufacturing,” explained AGIC’s Head of Germany, Wolfgang Seibold. “We are proud to be part of the largest ever Chinese direct investment in a German company and help KraussMaffei Group build a bridge into the China market. We are looking forward to working with the outstanding management team of KraussMaffei Group to realize our joint growth ambitions.”
AGIC’s Fundraising for Fund I to conclude in the near future
AGIC’s Fund I launched in March 2015, and its first closing was accomplished in August 2015. Led by Henry Cai, former Executive Chairman of Deutsche Bank Asia Pacific Investment Banking, and managed by a team of experienced investment professionals in Asia and Europe, AGIC is a 100 percent commercially driven specialized technology PE firm. AGIC’s investment strategy is to help leading European companies, which are looking to expand into Asia, by providing them with growth equity and access to the Asian markets and to leading Asian enterprises.
“As we build our portfolio for Fund I, in addition to the capital we provide, our aim is to become a genuine partner of the businesses we invest in,” said Henry Cai. “Based on our understanding of their home market and growth markets in Asia, we help our portfolio companies develop organic growth initiatives and operational improvements that drive success in Europe and Asia. An ever increasing number of Chinese companies look to Europe to enhance their product portfolio and technologies. With our knowledge in both markets, we can comprehensively support European companies and hence our LPs benefit from this massive opportunity.”
About AGIC Capital
AGIC Capital (“AGIC”) is an Asian-European private equity fund, which focuses on growth investment opportunities in Europe.
AGIC focuses on investments in companies which concentrate on industrial productivity & production efficiency, enable new applications & manufacturing methods and drive innovation for industrial products & solutions. We focus on investment opportunities in the following five industry sectors: (1) intelligent production, (2) high-end systems and components, (3) advanced materials, (4) medical equipment and (5) environmental protection technologies.
AGIC believes in value creation through growth and innovation. The fund supports its portfolio companies in the execution of their buy-and-build strategies, organic growth initiatives and operating improvements. AGIC strongly supports the concept of investing with a business purpose and working closely with the top management of its companies.
AGIC is managed by seasoned investment professionals out of its offices in Munich, Hong Kong, Shanghai and Beijing, which provides AGIC with in depth investment experience in Europe as well as Asia.
For more information: www.agic-group.com
About KraussMaffei Group
The KraussMaffei Group is among the world’s leading suppliers of machinery and systems for producing and processing plastics and rubber. Its products and services cover the whole spectrum of injection and reaction molding and extrusion technology, giving the company a unique position in the industry. The KraussMaffei Group is innovation-powered, supplying its products, processes and services as standard or custom solutions which deliver sustained added value along the customer’s value-adding chain. The company markets its offering under the KraussMaffei, KraussMaffei Berstorff and Netstal brands to customers in the automotive, packaging, medical, construction, electrical, electronics and home appliance industries. Continuing a long tradition of engineering excellence, the international KraussMaffei Group currently employs around 4,500 people. With a global network of more than 30 subsidiaries and more than 10 production plants, supported by around 570 sales and service partners, the company is close to customers around the world. KraussMaffei has been headquartered in Munich since 1838.
For more information: www.kraussmaffeigroup.com
Joseph Lo (Hong Kong): +852 9850-5033
Niels Schlesier (Beijing): +86 138 1014-4752
Fiona Claire Littig (Munich): +49 172 6900-345