KBA has taken another step on its diversification path with the acquisition of an 85% stake in German direct-to-container decoration press manufacturer Kammann Maschinenbau.
KBA has bought the Bad Oeynhausen-based business, subject to "minor formal conditions", from German private equity firm Perusa. Kammann’s two managing directors will retain 15% of the business.
The deal is expected to be completed within two weeks.
This latest deal follows KBA's purchase of Italian flexo press manufacturer Flexotecnica in February and ties in with KBA chief executive Claus Bolza-Schünemann's comments last month that KBA would look to make targeted acquisitions in "promising print segments".
"We want to expand our position in the growing and widespread packaging market and Kammann addresses a small but profitable niche in this printing segment," said KBA director of marketing and corporate communications, Klaus Schmidt.
Kammann manufactures offset and screen presses for directly decorating glass bottles, metal and plastic containers, CDs and DVDs, and flexible narrow-web materials. Its modular machines can also be configured with foiling, digital printing and embossing units.
According to KBA, the company is the world leader in glass container printing for the cosmetics and drinks industries.
Kammann, founded in 1955, employs 175 staff and generates sales of €30m (£26m) and, since being restructured by Perusa, has been profitable.
KBA said premium glass packaging is a growing market across the globe and, due to the challenging nature of manufacturing presses to print directly onto containers, it’s a market that is relatively safe from oversupply.
The company currently focuses on assembly and outsources the majority of its parts manufacturing. According to Schmidt, KBA has no plans to start manufacturing Kammann presses in its own facilities.
"The design and assembly of Kammann machines will stay at the Kammann site in Bad Oeynhausen. Manufacturing of parts, but not engineering, assembly and service, is mostly outsourced today and this will be the case in the future since it’s less risky," he said.
"Some parts could also be manufactured in other KBA facilities but only if these facilities can compete price-wise with external sources. This is the rule in today’s business environment."