Krones set to expand into injection molding with Netstal acquisition

SWITZERLAND – The German packaging and bottling manufacturer, Krones, is poised to acquire the Switzerland-based injection molding machine supplier, Netstal.

With a workforce exceeding 500 employees, Netstal specializes in providing injection molding machines to the beverage (PET preforms and caps), medical, and thin-wall packaging markets.

In the fiscal year 2023, Netstal reportedly achieved revenues exceeding €200 million (US$216.20m). While the company’s profitability currently falls below the Krones Group level, it is anticipated that this gap will be narrowed in the ensuing years.

Upon the finalization of the deal, Netstal will be integrated into the Filling and Packaging Technology segment.

The formal signing of the transaction is scheduled for the beginning of February 2024, and subsequent to this, the transaction is contingent upon approval under the relevant antitrust legislation. Krones anticipates the completion of the transaction in the first half of 2024.

Krones plans to finance the acquisition using existing liquid funds, with potential recourse to partial debt financing.

Notably, the two companies were strategic partners before this development. Netstal’s PET and Cap businesses are seen as complementary to Krones’ existing product portfolio in the beverage market.

In the realm of PET closed-loop solutions, Krones now spans all necessary technologies—from injection molding to PET container production to filling/packaging and recycling.

The addition of Netstal’s medical and thin-wall packaging segments aligns with Krones’ strategic diversification into the medical/pharma market, as well as food and home-personal-care applications.

As part of Krones, Netstal will retain its business responsibility, while also benefiting from international scaling.

In a broader move to diversify its portfolio, Krones had announced the acquisition of 90% of Ampco Pumps Co early last year.

Ampco Pumps is a manufacturer of sanitary pumps, mixing, and blending equipment for the food, beverage, dairy, personal care, and pharmaceutical industries.

The combination of Ampco Pumps and Krones’ Evoguard Valve Technology enables Krones to provide customers with a broader range of processing technology and components.

The regional synergies between the two companies are considered highly complementary by Krones.

Michael Nicholson, President of Ampco, expressed enthusiasm about the collaboration, stating, “Becoming a member of the Krones Group will allow us significant growth opportunities and widen our offerings to our customers.”

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