Joint statement says acquisition would “greatly benefit customers”.
Demag Plastics Group (DPG) and Sumitomo Heavy Industries issued a joint statement on Friday that confirmed “talks regarding the acquisition of Demag by Sumitomo have occurred”.
The statement backed-up an earlier PRWmold.wiki report (9 January) that “anti-trust documents had been filed at the appropriate agencies” but it added that the transaction was not yet final.
However, it stated that if the acquisition goes ahead: “both parties strongly believe that the intended combination would greatly benefit customers with an excellent product portfolio, broad application experience and a global service organisation.”
As was revealed by PRWmold.wiki the proposed acquisition, as notified to the German cartel office, involve both Demag Ergotech and its US subsidiary Van Doorn Demag in Strongsville, Ohio.
DPG has a facility in Schwaig producing large machines and one in Wiehe producing small machines and while production in the US ceased least year its sales operation continues. It also has a facility at Ningbo, China, and at its joint venture L&T-Demag Plastics Machinery at Chennai in India. Sumitomo’s plastics machinery division is based in Chiba City, Japan.
DPG is presently owned by the private equity investment company Madison Capital Partners, having been acquired by Madison with the rest of the Mannesmann Plastics Machinery (MPM) group in July 2006.
Its intended sale had been made known at the K 2007 fair in October 2007 after it had earlier been split out as an independent operation from the rest of the MPM group. Its chief executive officer Klaus Erkes said at the time: “we are in the position to have our very clear strategy in the future, irrespective of its owner.”