The agreement became effective as of June 17, 2015. Signing of the relevant documentation between FFG and the shareholders of MAG Group is planned before August, with closing of the transaction is expected before October 2015. The companies intend to present their combined offering together at the EMO trade fair in Milano in October.
The deal is the result of a long-standing relationship between chairman and founder of FFG Jimmy Chu, FFG Europe chairman Luigi Maniglio, MAG owner Prof Mo Meidar and CEO of MAG IAS GmbH Dr Reiner Beutel.
With the acquisition of MAG, FFG enhances its footprint in Europe and increases its presence in the automotive segment. For MAG Group, this acquisition will significantly improve its access to the growing Asian markets. The companies will also be able to realise material synergies in procurement, production and technology.
FFG is an industrial holding conglomerate with over 80 companies and had annual sales of around $3.3 billion in 2014. Its machine tool division reported sales of $1.8 billion takes in over 44 production facilities, mainly located in Taiwan, Germany, Italy, Japan, South Korea, China, Switzerland, and USA with a total of 28 brands. Those brands include Feeler and Leadwell* from Taiwan, Japan's Ikegai, plus European names such as VDF Boehringer, Hessapp, Honsberg, Hüller Hille, Jobs, Modul, Pfiffner, Rambaudi, Sachman, Sigma and Witzig & Frank.
MAG has seven production facilities in Germany, Hungary, China, USA and India, and reported sales of €474 million in 2014.
Said Jimmy Chu: "MAG is one of the largest and most technologically advanced producers of machine tools for the worldwide automotive industry and a strong brand. It complements the activities of FFG perfectly, with both companies benefitting significantly in terms of geographical reach, customer offering and know-how. With this strategic acquisition, FFG will become one of the largest machine tool companies in the world."
Dr Reiner Beutel, CEO of MAG IAS GmbH, responded: "FFG is the ideal partner to advance the further development of MAG Group. Built in 2005 from several smaller machine tool companies, MAG has developed into a successful, worldwide leading machine tool group with a strong focus and track record in the automotive industry. Today, every third crankshaft and every fifth engine block and cylinder head in the cars and trucks segment worldwide is crafted by a MAG machine. Together with our new partner, we will be able to accelerate our company growth and broaden our global footprint, especially in the Asian markets."
* Lead Precision Machine Tools is the UK agent
