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KM's IPO, Demag's sale: rumor mill turns but that's it so far

January 10, 2008

2 Min Read
KM's IPO, Demag's sale: rumor mill turns but that's it so far

An article earlier this month in German newspaper Frankfurter Allgemeine Zeitung (FAZ) posited that plastics processing machinery manufacturer KraussMaffei (Munich, Germany) is being made ready for an initial public offering (IPO) this year, with the article’s author noting that the firm, for the first time in years, revealed some of its financial figures including FY07 sales, orders, and profit.

A second rumor concerns Japanese injection molding machine maker Sumitomo, said to be in talks with competitor Demag Plastics Group (DPG; Schwaig, Germany), with Sumitomo planning to acquire DPG, which last year was split from the other members of the then-Mannesmann Plastics Machinery (MPM) group of KraussMaffei, Netstal, Berstorff, and DPG. All of the firms belong to Madison Capital, which separated DPG from the others, shut the MPM holding, and organized KraussMaffei so that Swiss injection molding machine maker Netstal falls under KM and extruder maker Berstorff was integrated into KM’s extruder manufacturing operations.

In another potential sign of an impending IPO, KraussMaffei last month also changed its legal status from a GmbH (with limited liability) to an AG (stock corporation). KM spokesman Matthias Andreesen confirmed the figures cited in the FAZ article and also that the company would not comment on market speculation. The FY07 figures are sales of euro 950 million (5% higher than FY06), orders of euro 1.06 billion (+8.4%), and EBITDA of euro 71 million (+40%). KM’s FY runs from Oct. 1-Sept. 30.

Raik Flaemig, head of marketing at DPG, said his company also would not comment on market rumors. DPG has been aligned with a number of different potential partners in the last year, and at last October’s K show, CEO Klaus Erkes said that it was clear that Madison Capital eventually would sell DPG once the appropriate offer was made by the right potential new owner.—[email protected]

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