CGS UPDATE – the CGS Journal
>>> Buy & Build
Expansion with a step across the Atlantik
Timo Serke, Analyst
With the takeover of the US company Standard-Knapp in July 2019, the Endof-Line Packaging Experts Group completed the first strategic step in its expansion. The result is a globally active industry leader for packaging machines and systems with a well-established presence in Europe and America. The cornerstone for further growth is firmly in place.
In December 2017, CGS laid the foundations for the Endof-Line Packaging Experts Group (EoL) with the acquisition of the German company A+F Automation und Fördertechnik GmbH (A+F). A+F is a leading manufacturer of secondary packaging machines for the European food and beverage industry. Its machines package yogurt, spreads, jam, and more – all produced for people’s daily lives. A+F’s business is therefore largely unaffected by fluctuations of the economic cycle.
The first step of the Buy & Build strategy
From the outset, an express goal of EoL’s group strategy has been to acquire a company in North America in order to serve existing customers directly on-site and expand its overseas market position. During 2018, EoL conducted discussions with several potential acquisition targets. It quickly became clear that Standard-Knapp (S-K) is the ideal partner. The merger took place in mid-2019 andaffords S-K’s shareholders an attractive succession solution and the company and its employees excellent longterm prospects as part of a promising group.
Complementary portfolios
Not only do the product portfolios of both companies complement each other – the end markets are also interwoven. While A+F has a strong presence in dairy products, S-K has so far focused strongly on the beverage industry. This complementarity will serve as an excellent launching pad boosting EoL’s growth on the North American and European markets with both product and service portfolios as well as the machines already installed there. Group-wide expertise clusters will enable EoL to better exploit its technological lead and further strengthen its prowess in innovation. The group’s strengthened presence in Europe and the US will bring it closer to its customers, speed up development processes, and increase responsiveness to customer needs. The integration began with the merger and is
already showing its first signs of success. An A+F employee is at S-K to optimize communication between the companies and the implementation of the integration.
Further expansion planned
The merger of the two companies has created a global industry leader with a strong presence in Europe and the US. What is still missing is a foothold in Asia. EoL is already in talks with other companies that can strengthen the group in terms of technology and end markets.
EoL is a leader in secondary packaging machines for the food and beverage industry.
Founded in 1890, Standard-Knapp was the first company in the US to offer secondary packaging solutions. The company has since then become a leading US manufacturer of end-ofline packaging machines with a focus on the food and beverage industry.
