Handshake
Milacron has announced the acquisition of CanGen Holdings, Inc. (‘CanGen’) a supplier of aftermarket process control components for extrusion and injection moulding applications.
In this latest acquisition, Milacron says CanGen, which consists of subsidiaries Canterbury Engineering Company and Genca, will enhance its aftermarket capabilities, including a broadened product offering into downstream tooling, proprietary rights to over 185,000 unique designs and drawings, and a regional centre for parts and service in the southeastern U.S.
“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.
CanGen CEO, Paul Cusolito, commented:“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.“
The transaction, subject to customary closing conditions, is expected to close by the end of 2015.