Gea Group working on two new acquisitions
Gea Group, the listed German maker of machinery for the food industry, is working on two new acquisitions, according to an interview published in Boersen-Zeitung.
As part of a conversation with the German-language daily, Chief Financial Officer Helmut Schmale said two prospective takeover deals currently are very close. He said Gea may make two or three takeovers this year.
He said that the company can certainly spend a further EUR 1.5bn on takeovers. However, he said Gea will proceed with caution and not buy at unreasonable prices.
Gea is striving for a regional spread in emerging markets and may add technologies, and M&A is its preferred method, he said.
Schmale said Gea management has identified certain fields in which the company should grow, including body care and pet food.
In general, Gea prefers not to compete with other bidders in auction situations, but to bring about acquisitions through its own contacts, Schmale said. A potential takeover candidate would typically be a company with turnover of between EUR 50m and EUR 100m, and Gea would only look at a more valuable company in a very special case, he said.
Boersen-Zeitung
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