GMM Pfaudler to acquire majority stake in the global business of Pfaudler Group.

GMM Pfaudler agreed to acquire a majority stake in the global business of its parent, the Pfaudler Group from the private equity firm Deutsche Beteiligungs. As per the agreements, GMM and the Patel family will acquire, a 54% and 26% equity stake respectively in the Pfaudler Group. DBAG will continue to retain the balance 20% stake. The consideration for the 54% stake acquired by GMM, which is expected to be around $27.4m, will be funded by the Company through a mix of internal accruals and debt. "Over the last few years Pfaudler has spent significant capex in modernizing its manufacturing facilities across the globe. This transaction will bring synergies across multiple levels, the combined business will now be in a position to leverage GMM’s highly successful lean production model and low-cost methods to improve both revenue and profitability. In addition, our order book remains strong on the back of robust demand driven by the Chemical and Pharmaceutical industries. Together with the GMM management and DBAG, who we have worked closely with over the last 5 years, we expect to complete a seamless integration and hit the ground running," Thomas Kehl, Pfaudler CEO.