Chinese-listed Company Buys NSM Packtec GmbH
2018-11-16 13:49 Friday
Lehui, a Chinese firm which recently went public, bought the entire stake of NSM Packtec GmbH held by Germany's NSM Magnettechnik GmbH for 4 million EUR.
Packtec, founded in 1975, is a manufacturer of sterile packaging equipment for milk beverages, whose customers include famous dairy companies such as Danone, Unilever, Quaker, Muller, Dr.Oetker, Pascual, etc.
Packtec's total assets in 2016 were about 8.5 million EUR, with an operating income of 6.64 million EUR and net assets of 545,000 EUR.
According to people familiar with the matter, after the completion of the acquisition, Packtec's main business and basic operations would remain the same. The company would still produce and manufactures products in its original factory in Germany, and retain its German brand, core technology and management personnel. NSM Magnettechnik GmbH is prohibited from engaging in all business directly or indirectly competing with Packtec for two years after completion of the settlement.
Lehui specializes in the production of beer brewing equipment and aseptic canning equipment, including design, development, manufacturing and installation.
LeHui is bullish on Packtec's brand and technology, and hopes that the acquisition can facilitate its entry into the dairy (especially yogurt) packaging market. The company hopes to strengthen dairy packaging equipment manufacturing capacity, through its brewing and canning equipment manufacturing capabilities.
Upon completion of the acquisition, LeHui will provide Packtec with advanced processing equipment, human capital, automatic control hardware and other supporting services. These measuresare expected to substantially reduce production costs for itself and Packtec.
Before the acquisition, Packtec's business was limited to Europe and the United States. LeHui will now use its sales channels to promote Packtec products in Asia, Africa and South America.