Maag Group was created in 2010 through the merger of Swiss pump manufacturer Maag and Automatik, a German manufacturer of polymer processing machinery. The backdrop for the deal, put in place by CGS and Clyde Blowers, was a sharp downturn in both companies’ business in 2009, brought on by the tough economic conditions.
Following the investment, private equity set about improving company performance by developing a new generation of machinery, redesigning existing machinery and optimising the production processes. The efforts resulted in a near-doubling of company profit margins and more than a 40% increase in sales, with the combined group attracting the attention of US-based manufacturing giant Dover Corporation, which bought Maag Group in 2012.
We have built a strong company through the years and we have greatly enjoyed our partnership with CGS Management and Clyde Blowers Capital.
Ueli Thuerig CEO , Maag Group
What did the business need?
- Investment to become a global force in polymer processing equipment
- Capital for new product development
- Establishment of new worldwide production and service sites
- Expansion of polymer and extrusion pumps business
How did private equity backing create lasting value?
- Provided financial guidance and support for the businesses during the economic downturn
- Established production and service sites in Brazil, China, Malaysia, Taiwan and the US
- Integrated Automatik and Maag businesses
- Implemented a new organisational structure and created global sales teams
- Invested in developing new generation of more productive and energyefficient machinery
What outcomes did private equity investment achieve?
- Increased core profits by 12% to 19%
- Investing in equipment made Automatik German innovation leader and doubled registered patents
- Established Maag as world leading maker of equipment and systems for global plastics processing machinery industry
- Created 40 new jobs globally, including 15 in Germany
- Increased sales from €84m in 2009 to €120m in 2012