LUXEMBOURG —Demag
Holding S.à.r.l. of Luxembourg has agreed to sell mannesmann
plastics machinery (mpm), based in Munich, to its management and
strategic investors represented by Chicago based Madison Capital
Partners (Madison). The management of mpm and Madison will purchase
100% of mpm shares. The binding sale and purchase agreement was signed
on Friday, May 26, 2006. A purchase price has not been disclosed.
Financing for this transaction was arranged by HVB Group. Closing
is expected to occur within 45 days.
mpm is the world’s largest group in the plastics and rubber processing
machinery sector. mpm consists of four independent brands. In injection molding
machines, mpm is the world’s market leader. In its most recent fiscal year,
the group recorded sales of 1.3 billion Euro. Madison supports mpm’s multi-brand
strategy.
The mpm group is a former member of the Mannesmann
Corporation that was later bought by Siemens.
In 2002, seven former Mannesmann and Siemens companies, including mpm, were purchased
by Demag Holding of which 81% is owned
by funds advised by KKR and the remaining 19% by Siemens.
Madison Capital Partners (www.madisoncapitalpartners.net), a Chicago based investment firm, acquires and grows industrial manufacturing companies.
KKR is one of the world's oldest and most experienced private equity
firms specializing in management buyouts. Founded in 1976, it has offices
in New York, Menlo Park, Calif., London, Paris, Hong Kong and Tokyo.
Over the past 30 years, KKR has invested in more than 140 transactions
with a total value of approximately US$193 billion. For more information,
please visit www.kkr.com.
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