Processing and packaging machinery manufacturer Krones has signed an agreement to acquire 90 per cent of Ampco Pumps, with the deal set to increase the profitability margin of Krones' Process Technology segment, as well as the group margin.
Based in Wisconsin, USA, Ampco Pumps is supplying sanitary pumps and applied products like mixing and blending equipment to the food, beverage, dairy processing, personal care and pharmaceuticals markets for the past 70 years.
Krones says that in the 2022 fiscal year, Ampco Pumps generated revenue of approximately US$50 million, with a workforce of 130 employees.
Krones says that current Ampco management will remain and will continue to hold 10 per cent of the shares of Ampco. Krones has an option to buy the 10 per cent of the shares in the future. Krones says the acquisition of Ampco Pumps is a major step in expanding the components business of its Krones Processing. With Ampco Pumps and Evoguard Valve Technology Krones says it now has a broad portfolio of all key components for the processing technology market.
The transaction is subject to approval under the relevant antitrust legislation. Krones expects the transaction to be completed (closing) within the first half of this year. Krones will consolidate the figures of Ampco Pumps in its Process Technology segment.
