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FFG Group to acquire MAG’s Industrial Equipment Business Unit

  • FFG and MAG sign agreement on sale of business unit
  • MAG group to focus on automotive OEMs and tier suppliers
  • Michael Heinz enters new management position
  • Hermann Doppler joins supervisory board

Göppingen/Milan, September 15, 2013 – The Fair Friend Group (FFG) and the MAG Group (MAG) have formally signed the sale of MAG’s Industrial Equipment business unit to FFG. The transaction is subject to customary closing conditions and regulatory approvals. The parties have agreed not to disclose any information about the purchase conditions.

MAG will separate the Industrial Equipment division from the group, including the respective service activities. The business unit is part of the German company MAG IAS GmbH and comprises manufacturing plants and service locations in Mosbach, Taunusstein, Chemnitz, Witten, Offenburg and partially Göppingen, as well as the Russian sales and service entity. In 2012, MAG IAS GmbH’s part of the present business unit generated a sales volume of over 120 Mio. Euro with about 600 employees, making up 24% of MAG IAS GmbH’s total revenue. This excludes the volume of MAG Modul Verzahntechnik GmbH in Chemnitz, which has been merged into MAG IAS GmbH in 2013 and is thus part of the transaction. MAG IAS GmbH will ensure an orderly transition. In particular, the responsibilities in the areas of sales and service will be transferred seamlessly, the respective departments will remain fully functional at all times and service contracts will be installed with customers and between the business units where necessary.

The integration into FFG’s European business unit and manufacturing network yields considerable potential for MAG’s Industrial Equipment business unit. FFG has recently enhanced its activities in Europe significantly, regarding capacities, product and technology range, having recently grouped within FFG Europe, the European holding company of FFG, the Italian machine tool manufacturers Jobs, Sigma, Sachman and Rambaudi. The group’s strategy is targeted at expanding its activities to form a strong global machine tool group with fully functional regional structures. The Industrial Equipment portfolio matches with the group’s strategy, rounding out the advanced technology portfolio of FFG Europe, while targeting corresponding industries. The manufacturing capacities in Germany, the value of the brands Hessapp, Hüller Hille, Modul and Witzig & Frank will expedite FFG group’s growth substantially.

The Automotive business unit of MAG IAS GmbH with manufacturing plants in Eislingen, Göppingen, and Rottenburg, as well as its branches in China, Hungary and Korea and related companies in the USA, UK, and India are not part of the deal. The sale of the Industrial Equipment business unit will further sharpen the MAG Group’s profile as a system provider for the automotive and truck industry and tier suppliers. Focusing on automotive solutions will significantly enhance the group’s future profitable growth. In this context, MAG has appointed Michael Heinz as managing director, leading the sales and service activities of the group and joining CEO Prof. Dr.-Ing. Mo I. Meidar, CFO Dr. Reiner Beutel and COO Dr. Heiner Lang on the Management Board. Since 2010, Michael Heinz has successfully led the services unit of the MAG group. In addition, Hermann Doppler will complete MAG’s supervisory board, following  Beutel, who has recently been appointed as CFO for MAG. Hermann Doppler held various executive positions in the automotive and tier supplier industry, among others as Vice President Operations Powertrain at Daimler AG.

About the Fair Friend Group
The Fair Friend Group, headed by Chairman Jimmy Chu, includes over 60 companies and operates in leading industrialized and emerging countries with 2.5 billion USD in sales. The machine tool division, posting a total of 1.3 billion USD in sales, includes over 32 production facilities mainly located in Taiwan, Japan, South Korea, China, USA and Italy, with a total of 23 brands. FFG is the most globalized world leader in the machine tool sector with production facilities and associated sales and marketing activities in 8 different countries. FFG Group is mainly focused on CNC machine tool business (more than 50% revenue) and includes three more divisions: IT Industrial Division, Industrial Equipment Machinery Division, and Green Energy Equipment Division.
In the machine tools sector, the FFG Group is partner in joint ventures with the following Japanese companies listed at the Japan Stock Exchange: Takamatsu, Citizen Miyano, Waida, Toyota Tsusu, Marubeni, F.T. Japan, EMC Japan, Takeuchi, as well as Mectron, and Yamamoto Sumizawa. In the Industrial Equipment Machinery sector the group is also partner in joint ventures with the following Japanese companies listed in the Japan stock exchange; Anest Iwata and Nippon Cable.

About FFG Europe
FFG Europe is a European machine tools holding company, held by FFG together with Italian business partners (Luigi Maniglio, Chairman of FFG Europe) and Jobs management team (Marco Livelli, Luigi Riboli and Antonio Dordoni).
FFG Europe  includes well known leading brands and production facilities: Jobs (5-axis milling machines, among world leaders in high toque, high speed and very high speed milling applications for aeronautic, automotive and general engineering industries), Rambaudi (historical brand in 5-axis milling machines, specialized in mould and die milling applications), Sachman (horizontal milling machines and machining centers), and Sigma (3 and 5-axis high performance vertical machining centers and flexible milling cells).

About MAG
MAG is a leading manufacturing technology group with over 2200 employees, generating an annual turnover of approximately 750 million euros at 22 locations in Germany, the USA, China, India, Russia, Korea, Hungary, the UK, and Switzerland. With a strong foundation based upon renowned machine tool brands such as Boehringer, Cross Hüller, Ex-Cell-O, Hessapp, Honsberg, Hüller Hille, Lamb, Modul, and Witzig & Frank, MAG has become a global player, since its founding in 2005, with unmatched technology and expertise. Key industrial markets served include automotive and truck, general machining, heavy equipment, oil and gas, rail, aerospace, and wind turbine production.
MAG offers machine tools, manufacturing systems, and services including turning, milling, honing, hobbing, composites processing, maintenance, automation, and core components. As full scale supplier, MAG manufacturing solutions include a comprehensive range of equipment and technologies, process capability and full turnkey systems. With an in-depth knowledge of applications and manufacturing requirements, MAG partners with its customers to continuously reduce their production costs.