Onex set to buy German KraussMaffei Tech: sources
By Alexander Hübner and Arno Schuetze
FRANKFURT (Reuters) - Canadian private equity company Onex OCX.TO has clinched a deal to buy German plastics machinery maker KraussMaffei Technologies, two sources close to the transaction said on Tuesday.
"The deal is about to be signed" one of the sources said, declining to give financial details.
Onex beat out a Chinese machinery group in the bidding for KraussMaffei Technologies, which is owned by private equity group Madison Capital MDCp.V.
KraussMaffei Technologies has common roots with defense group Krauss-Maffei Wegmann but today is an independent company.
Madison Capital, advised by Goldman Sachs (GS.N: Quote), hoped to fetch as much as 700 million euros ($907 million) in the sale, sources close to the transaction had said earlier this month.
KraussMaffei, with a workforce of about 4,000 people, generated sales of just over 900 million euros and a profit in its financial year 2010/11 ending in September.
It traces its roots to a locomotives maker in 1838. The company later specialised in defence products and spun off its plastics technology into a separate unit, which in 1992 became a part of steel group Mannesmann.
After the breakup of Mannesmann in 2000, the Krauss-Maffei plastics and rubber machinery operations became part of a joint venture of Siemens (SIEGn.DE: Quote) and KKR (KKR.N: Quote). Madison Capital acquired the business in 2006. Continued...