TPT March 2016

I NDUS T RY

Chinese chemicals group to acquire KraussMaffei CHEMICALS group China National Chemical Corporation (ChemChina) has agreed to acquire KraussMaffei Group from Onex Corporation for a cash enterprise value of €925mn. The transaction is subject to closing conditions including customary regula- tory approvals. The KraussMaffei Group is a manufacturer of machinery and systems for producing and processing plastics and rubber. The transaction is expected to accelerate the growth of the company in light of potential business synergies. ChemChina will make the acquisition together with Guoxin International Investment Corporation and AGIC Capital. “With ChemChina, we have found a strategic and long-term oriented investor who has been interested in our company for many years,” said Frank Stieler, CEO of the KraussMaffei Group.

(from left) Ting Cai, chairman and CEO of China National Chemical Equipment Co Ltd; Dr Frank Stieler, CEO of the KraussMaffei Group; and Chen Junwei, CEO of ChemChina Finance Co Ltd

corporate responsibility for the company will stay in Europe. “This applies to production, technology, patents as well as research and development. The KraussMaffei Group will continue to operate as a German company with a supervisory board based on co- determination. All existing agreements and location-based commitments will remain unchanged. “At present, the company has 4,500 employees globally, of which 2,800 are based in Germany. The company intends to increase its workforce in 2016.” ChemChina – China Email: zghg@chemchina.com.cn Website: www.chemchina.com KraussMaffei Technologies GmbH – Germany Website: www.kraussmaffeigroup.com

The company will continue to operate in its current corporate structure. ChemChina chairman Jianxin Ren commented, “We are strengthening our company with one of the leading global engineering groups, encompassing a 178-year corporate history. In doing so, we expect that KraussMaffei Group will maintain its identity and independence. We are investing in the company’s strong management team and its technological expertise, which we believe will benefit our Chinese subsidiaries and position the chemical machinery business of ChemChina, which builds and sells equipment for the rubber and chemical industry, to become a pioneer in achieving the ‘Made in China 2025’ programme.” Dr Stieler added that the KraussMaffei Group’s headquarters will remain in Munich, Germany, and the operating and

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