Krones signs agreement to acquire 90% of Ampco Pumps
On April 20, 2023, Krones has signed an agreement to acquire 90% of Ampco Pumps Company LLC. 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. The company has more than 70 year history in the pump market and is a key player for sanitary pumps in the US food and beverage market.
In the 2022 fiscal year, Ampco Pumps generated with a workforce of more than 130 employees revenue of approx. US$50 million and a high EBITDA margin. The transaction is intended to increase the profitability margin of the “Process Technology” segment as well as the group margin of Krones. Current Ampco management will remain and will continue to hold 10% of the shares of Ampco. Krones has an option to buy the 10% of the shares in the future.
Krones says that the acquisition of Ampco Pumps is a major step in expanding the components business of Krones Processing. With Ampco Pumps and Evoguard Valve Technology, Krones has now a broad portfolio of all key components for the processing technology market. In addition, the businesses of the two companies complement each other in regional terms.
The transaction is subject to approval under the relevant antitrust legislation. Krones expects the transaction to be completed (closing) within the first half of 2023. As of the closing date, Krones will consolidate the figures of Ampco Pumps in the “Process Technology” segment.
