Milacron Acquires CanGen
CanGen is a supplier of aftermarket process control components for extrusion and injection molding applications with approximately $20 million in sales.
Milacron, Cincinnati, will acquire Atlanta-based CanGen Holdings Inc. (CanGen), which consists of subsidiaries Canterbury Engineering Co. and Genca. This acquisition will enhance Milacron’s aftermarket capabilities including a broadened product offering into downstream tooling, proprietary rights to more than 185,000 unique designs and drawings and a regional center for parts and service in the southeastern U.S. CanGen has manufacturing facilities in Atlanta and Clearwater, Fla. Genca also has a strong market position throughout Mexico and South America.
“CanGen fits perfectly with our core growth strategy of accelerating lifecycle sales through consumable products and aftermarket service,” said Milacron CEO Tom Goeke. “This acquisition brings a complementary product portfolio and customer base to Milacron, further building upon our fully integrated customer-driven solutions. Additionally, CanGen provides an entry into the extrusion market for rubber products, which opens up a new set of customers for Milacron’s existing product range.”
The consumables product market served by Canterbury and Genca includes screws and barrels, tooling and cross-heads, and other machined metal components. CanGen’s products are marked by substantial recurring revenues from the regular repair and replacement cycles of its large installed base.
“The combination offers a great opportunity for CanGen and its employees to serve a significantly larger customer base while obtaining access to the extensive resources available at Milacron,” said CanGen CEO Paul Cusolito. “We look forward to working with the Milacron team to continue building upon our available product offerings and value-add to our customers. This is a great fit for the future of our business and our employees.”
The transaction, subject to customary closing conditions, is expected to close by the end of 2015.
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