GEA acquires Hilge from Grundfos

30/06/2015

From the left it is Martin Rothfuchs, Deputy Chief Legal Counsel, GEA, Florian Rueck, Project Manager M&A, Corporate Development, GEA, Mikael Geday, CFO and Group Executive Vice President, Grundfos, and Andreas F. Brandt, General Counsel and Group Vice President, Grundfos.

One of the world’s leading manufacturers of sanitary pumps, Hilge, mostly owned by the Danish based Grundfos, is acquired by GEA. The signing is made today.

Since 2004 Hilge has been a part of the Grundfos Group with its sanitary pumps for beverage, food and pharmaceutical industries. Due to the Grundfos Groups strategic direction and an outspoken interest from the GEA Group, the Grundfos Group has decided to accept an offer from GEA to acquire Hilge.

“With the acquisition of Hilge, we continue implementing our M&A strategy to fill technological gaps by acquiring accretive specialist companies which complement our product portfolio”, commented Juerg Oleas, CEO of GEA. “Hilge strengthens our position as a leading supplier of equipment and provider of solutions in hygienic and aseptic process environments.”

While exiting the sanitary pump business, Grundfos will continue to focus on non-sanitary products and solutions within the Food, Beverage, and Pharma industries, as this is part of Grundfos’ general offerings to the industrial market.

“Hilge has been a part of the Grundfos Group since 2004. Nevertheless, the increased focus for Grundfos on core business has led to the conclusion that the sanitary business is not a strategic focus area. GEA is a strong strategic fit for Hilge with strong synergies expected given GEA’s focus on the processing industry; including food and beverage. Everyone wins!  GEA expands in its focus area, Grundfos concentrates on its core business, and Hilge joins an organization where it will play a strong strategic role”, says Executive Vice President Lars Aagaard, Head of Business Development of Grundfos.

The divestment is aligned with Grundfos’ new 2020 strategy, and this transaction exemplifies two trends within the sanitary pump market: Consolidation and backward integration; with more system builders becoming producers of sanitary pumps.

The transaction comprises the existing Hilge production unit, Research & Development, Product Management, combined with sales support and distribution rights.

All staff related to Hilge - employees at Hilge and/or Grundfos - have been offered new positions by GEA as GEA wish to build on their unique skills and competencies.

The Grundfos Group acquired Hilge in 2004 from Mrs. Berdelle Hilge. The Berdelle-Hilge Foundation will continue as minority owners.





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