Krones Expands Portfolio with Acquisition of Ampco Pumps
Krones, a leading supplier to the food and beverage industry, has announced that it has signed an agreement to acquire 90% of Ampco Pumps, a powerhouse in the field of sanitary pumps and mixing and blending equipment. With more than 70 years in the pump industry, Ampco Pumps is a respected player in the US food and beverage market.
Ampco Pumps generated revenue of approximately US$50 million (€319m) in the 2022 fiscal year, with over 130 employees on its payroll. Krones sees the acquisition as a key strategic move to expand its components business in the processing technology market. Once the transaction is completed, Krones will consolidate the figures of Ampco Pumps in the Process Technology segment.
Advantages of the Acquisition
The benefits of acquiring Ampco Pumps are clear. Krones expects to increase profitability margins, as well as the group margin, with the acquisition. The existing Ampco management will continue to hold 10% of the shares of Ampco, and Krones will have the option to buy the 10% of shares in the future.
With the acquisition of Ampco Pumps, Krones will be able to offer a broad portfolio of all key components for the processing technology market. In addition, the businesses of the two companies complement each other perfectly in regional terms. This is seen as a major step for Krones in expanding its components business of Krones Processing.
Antitrust Approval
The transaction is subject to approval under the relevant antitrust legislation. Krones anticipates that the transaction will be completed within the first half of 2023.
Conclusion
The acquisition of Ampco Pumps is a significant development for Krones, which will enable the company to expand its portfolio and boost profitability margins. The move is considered crucial for Krones in expanding its components business in the processing technology market. Krones anticipates the transaction will be completed in the first half of 2023, subject to antitrust approval.
