KHS Group and Ferrum Packaging will work together to provide integrated customer systems
Ferrum Packaging is a manufacturer of can seamers. (Credit: KHS Group)
Filling and packaging systems provider KHS Group has agreed to acquire a minority stake in Ferrum Packaging for an undisclosed sum.
Upon completion of the transaction, which is subject to approval from antitrust authorities, both machine-engineering companies will work together to form a common system portfolio and provide integrated customer systems.
Ferrum Packaging was established as a subsidiary of Ferrum AG and integrates Ferrum’s entire worldwide can seaming business. KHS Group and Ferrum AG have been working together in the can segment for many years.
Ferrum Packaging CTO Oliver Bühler said: “We don’t want to merely present one solution; we want to develop a comprehensive system portfolio that meets the needs of every customer while offering clear customer benefits.”
As part of the transaction, KHS will purchase a minority stake in Ferrum, while Ferrum Packaging’s US subsidiary will take over KHS’ can seaming business together with its employees and incorporate it into the joint offer.
KHS and Ferrum will focus on the development of more efficient systems, including a filler-seamer block.
The companies will design combined filler-seamers for the maximum capacity class, thereby helping to benefit the overall process.
The deal will also allow both firms to expand services to customers
Both companies will also serve as a one-stop-shop for services, including overhauling of the systems and integration of the KHS remote maintenance system ReDiS. They will also coordinate in the supply of spare parts to help continuously operate machines.
KHS CFO and purchasing in charge Martin Resch said: “Ferrum AG is the worldwide well-known manufacturer of can seamers. Combined with our future-oriented solutions in the field of filling and packaging technology, we form an effective union that is valued highly in the market.”
Based in Schafisheim of Switzerland, Ferrum AG operates in the can seaming sector with Ferrum Packaging. It also supplies separation technology through Ferrum Process Systems.
In May this year, KHS Group announced the modernisation of its Juchostraße headquarters in Dortmund, Germany. The modernisation is comprised of expanding the production area and renewing the machine park.