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New ownership for MPM

Mannesmann Plastics Machinery (MPM; Munich, Germany) has been acquired for an undisclosed price by financial investor Madison Capital Partners (Chicago, IL) from previous owner Demag Holding (Luxembourg). Equity investment firm Kohlberg Kravis Roberts & Co. owns 81% of Demag Holding and acquired control of MPM in September 2002; German conglomerate Siemens owns the remaining 19% of Demag Holding.

MPM includes injection molding machine makers Demag Plastics Group, Krauss-Maffei Kunststofftechnik and Netstal, plus Berstorff, which make compounding and sheet extruders plus rubber extrusion machinery. Krauss-Maffei also makes extruders and polyurethane processing equipment. Former MPM group member Billion was acquired by its management earlier this year. In the fiscal year to Sept. 30, 2005, MPM recorded sales of €1.3 billion.

Under KKR ownership, MPM management, including executives at group member companies, had a stake of unknown size in the group. MPM spokesman Jörg Hettmann says it remains to be seen whether the terms and extent of that ownership remain the same under Madison Capital. It also remains to be seen if Madison will maintain the four manufacturers as a group. According to MPM''s press release, the equity investor supports the group''s multibrand strategy.

Madison capital''s portfolio includes processors (Holm Industries) and machinery and equipment manufacturers (Brown Machine, Epco). Since its inception in 1994, it has acquired 19 firms, selling 12. Madison signed a binding agreement for the acquisition of MPM on May 26 and expects to close the deal by mid-July.

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