Krones expands process capabilities with Ampco Pumps acquisition
Krones has signed an agreement to acquire 90% of Ampco Pumps.
Based in Wisconsin, USA, Ampco Pumps supplies sanitary pumps and applied products like mixing and blending equipment to the food, beverage, and dairy processing 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 approximately US$50 million (€319m) and a high EBITDA margin.
The transaction is key to the process technology segment and will increase the profitability margin, 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.
The acquisition of Ampco Pumps is seen as a major step in expanding the components business of Krones Processing. With Ampco Pumps and Evoguard Valve Technology Krones can offer a broad portfolio of all key components for the processing technology market. In addition, the businesses of the two companies complement each other perfectly in regional terms.
The transaction is subject to approval under the relevant antitrust legislation. Krones expects the transaction to be completed within the first half of 2023. As of the closing date, Krones will consolidate the figures of Ampco Pumps in the Process Technology segment.
