CGS’s involvement with what was later to become the Maag Group began with its acquisition of Automatik Plastics Machinery in 2008. In 2010, CGS merged this company with Maag Pump Systems, formerly owned by Clyde Blowers Capital, to create the Maag Group, a global leader in the manufacture of high-performance geared pumps, filtration systems and pelletizers for the plastics, chemicals, extrusion and rubber industries.
Challenges before CGS’s involvement:
- major investment needed to become a global force in polymer processing equipment
- capital required for new product developments
- the need to establish a worldwide network of production and service sites
- the need to expand the polymer and extrusion pumps business
CGS successfully completed a series of value creation initiatives. Specifically, it:
- provided financial guidance and support to the businesses during the economic downturn.
- established production and service sites in Brazil, China, Malaysia, Taiwan and the United States.
- vertically integrated the businesses of Automatik Plastics Machinery, a supplier of pelletizing equipment, and Maag Pump Systems, a manufacturer of gear pumps.
- implemented a new organizational structure and created a global sales team.
- invested in developing a new generation of more productive and energy-efficient machinery.
- Sales increased from EUR 84 million in 2009 to EUR 120 million in 2012.
- Core profit margin (EBITDA) increased significantly.
- The company was awarded Germany’s innovation prize for the development of a new machine.
- The number of registered patents was doubled.
- The Maag Group took on a solid position as a globally leading manufacturer of equipment and systems for the plastics processing machinery industry.
- 40 new jobs were created worldwide, 15 of which in Germany.