China National Chemical Corporation (ChemChina) will acquire KraussMaffei Group from Onex Corporation (Onex) for a cash enterprise value of €925 million (US$1,005.06 million).
The transaction is subject to closing conditions including customary regulatory approvals.
The transaction is expected to accelerate the growth of the company considerably in light of potential business synergies.
ChemChina, Guoxin International Investment Corporation and AGIC Capital will make this acquisition.
“With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our Company for many years,” said Frank Stieler, CEO of the KraussMaffei Group.
The KraussMaffei Group will continue to operate in its current corporate structure.
“We are strengthening our company with one of the leading global engineering groups, encompassing a 178-year corporate history,” said Jianxin Ren, chairman of ChemChina.
“In doing so, we expect that KraussMaffei Group will maintain its identity and independence.”
“We are investing in the Company’s strong management team and its technological expertise, which we believe will benefit our Chinese subsidiaries.”
“[It will also] position the chemical machinery business of ChemChina, which build and sell equipment for the rubber and chemical industry, to become a pioneer in achieving the ‘Made in China 2025’ program which aims to enhance Chinese industry.”
ChemChina is China’s largest chemicals group, having generated revenues of around €37 billion in 2015 with approximately 140,000 employees, of whom 45,000 are located outside China.
The group operates internationally and has a global expansion strategy, having acquired or invested in companies in Italy, France, Norway, the UK and Singapore in the last few years with the most recent acquisition being tire manufacturer Pirelli.