German packaging and bottle machine manufacturer Krones A.G. is acquiring Swiss injection press supplier Netstal Machinen A.G. for 170 million euros ($183.7 million).
The seller is Germany's financially struggling KraussMaffei Technologies GmbH, which lost at least $359.3 million (2.55 billion RMB) and as much as $422.7 million in 2023, according to a “pre-loss announcement” issued Jan. 31.
Publicly traded on Shanghai's stock exchange, KraussMaffei has been majority owned by China National Chemical Corp. since 2016.
KraussMaffei’s pre-loss statement, released two days after the Netstal deal was announced, does not directly address the reasons for selling to Krones, but it paints a picture of deepening financial pressures on the company.
KraussMaffei’s losses in 2023 surpass the red ink of 2022 despite a series of reform measures to optimize the organization, such as relocating a factory, consolidating services and streamlining jobs.
The slowdown in global economic growth, international geopolitical conflicts, high interest rates in the United States, weak market demand for some products, and intensified competition contributed to the company’s financial losses, the announcement says.