GEA Divests Production of Packaging Materials
Under new ownership focus, they will benefit from more favorable prospects for continued capital investments in this firm.
Oct 4 2011 --- GEA Group sold CFS Kempten GmbH, in Kempten, Germany, to Conflex Packaging GmbH. The company makes packaging materials for the food industry. It had been part of the CFS Group which GEA acquired in March 2011. CFS Kempten realized revenues of EUR 45 million during the prior fiscal year (ending Feb 2011) and currently employs 190 people. Consummation of the transaction remains subject, among other things, to the approval of the anti-trust authorities.
“Packaging materials surely are a complement to the packaging machines sold by GEA, but we felt that we can still offer those materials as an ancillary product to the customer of our machines without having to own and run its production ourselves. CFS Kempten would have needed to grow significantly to meet our expectation that companies in our portfolio take a leading market position in their respective industry.
Under new ownership focus, they will benefit from more favorable prospects for continued capital investments in this firm. For our customers the transaction will make no difference. As to the employees of CFS Kempten, I wish to thank them for their dedicated work”, explained Juerg Oleas, CEO of GEA Group.
