Franklin-based Krones Inc.,a subsidiary of Germany-based integrated packaging and bottling line system manufacturer Krones AG, has signed an agreement to acquire a majority stake of Glendale-based Ampco Pumps Company. Terms of the deal were not disclosed.
Ampco manufactures sanitary pumps, mixing, and blending equipment for the food, beverage, dairy, personal care and pharmaceutical industries.
Krones will acquire a 90% share of Ampco and has an option to buy the remaining 10% of the shares in Ampco at some point in the future, which currently remain with company management.
“The acquisition of Ampco is a major step in enhancing the Krones Processing Group portfolio and will provide a broader distribution network,” said Holger Beckmann, president and chief executive officer of Krones Inc. “With Ampco Pumps and Krones’ Evoguard Valve Technology, Krones will offer customers a wider range of processing technology and components. In addition, the businesses of the two companies complement each other perfectly in regional terms.”
Ampco’s current leadership team will remain with the company following approval of the transaction, which is subject to approval under the relevant antitrust legislation.
“Krones is a major global player in the processing and packaging industries, and we are excited to join forces with them,” said Michael Nicholson, president of Ampco Pumps Company. “Becoming a member of the Krones Group will allow us significant growth opportunities and widen our offerings to our customers.”
Last year, Ampco broke ground on an expansion of their Glendale headquarters at 2045 W. Mill Road. The 17,000 square foot addition includes a brand-new state-of-the-art lab for the growing Ampco Applied Products division. The increased space will also enable the company to expand the centrifugal and positive displacement pump assembly areas and warehouse space.