Lazard Middle Market Represented
Mannesmann Plastics Machinery GmbH in the sale of Demag Plastics Group to
Sumitomo Heavy
Industries
TRANSACTION
DESCRIPTION
Lazard Middle Market
represented Mannesmann Plastics Machinery GmbH (“MPM”) in the sale of
Demag Plastics Group (“Demag”) to Sumitomo Heavy
Industries. The transaction brings together two of the world’s
leading manufacturers of plastic injection molding machines.
TRANSACTION HIGHLIGHTS
MPM is an affiliate of
Madison Capital Partners, a Chicago-based investment group that had
separated Demag from MPM, the world’s largest manufacturer of plastic and
rubber processing machinery that includes Krauss-Maffei, Berstorff, and
Netstal.
David Iverson, a Managing Director with Lazard Middle
Market said, “After helping Demag refocus its business model and
streamline its operations, Madison Capital Partners felt that Demag was in
a position to generate interest from a range of potential new
partners. Sumitomo’s position as a leader in the industry makes it
an ideal partner.”
Lazard Middle Market Vice President Kevin
Janicki added, “This is the 7th time we have represented Madison Capital
Partners in a transaction, and we are enthusiastic about the resulting
combination of Demag and Sumitomo.”
Larry Gies, President and CEO of Madison Capital
Partners said, “The management team of Demag has done a great job
improving their business, and we are pleased that Demag has found a
perfect home.”
THE
COMPANY
Demag Plastics Group (www.dpg.com) is a global designer and
manufacturer of standard and customized injection molding
machines. Based in Schwaig, Germany, and with manufacturing
facilities in Germany, China, and India, Demag sells hydraulic, electric,
and hybrid injection molding machines to customers around the world for
use in the manufacture of plastic products for a variety of
applications.
THE SELLER
Mannesmann Plastics Machinery (“MPM”) is
the world’s largest manufacturer of plastics and rubber processing
machinery and the market leader in the production of injection molding
machines. Based in Munich, Germany, the company holds over 1,600
patents and employs over 5,000 people.
Madison
Capital Partners (www.madisoncapitalpartners.net)
is a Chicago based investment group that acquires and grows industrial
manufacturing companies. Madison has previously financed the growth of
over 20 very successful companies.
THE BUYER
Sumitomo Heavy Industries
(www.shi.co.jp/english/index.html) is a
large industrial conglomerate founded in 1888 and listed on the Tokyo
Stock Exchange. Sumitomo said in a news release that its 2006 sales of
injection molding machines were more than $440 million.
ABOUT LAZARD MIDDLE MARKET
Lazard Middle Market
(www.lazardmm.com), a subsidiary of Lazard (NYSE:LAZ), provides advice on mergers
and acquisitions, restructuring, and financings to the middle market.
Formed in 2007 with Lazard's acquisition of Goldsmith Agio Helms,
Lazard Middle Market has approximately 100 professionals in Minneapolis,
New York, Chicago, and Los Angeles.
