Mg technologies, which currently operates in chemicals and engineering, said last October that it wanted to refocus its strategy around its processing unit GEA as the core business. GEA develops and supplies tailor-made process lines, systems and components, a sector offering good growth opportunities.
Under the new strategy, it is expected to generate roughly 80 per cent of the group's revenue.
To drive this growth, GEA said last week it is to buy Germany-based Diessel, which makes process plants forthe pharmaceutical and biotech sectors as well as food and beverage industries. The acquisition constitutes an ideal fit for the current activities of GEA's Process Engineering division, said the firm.
The purchase price was not revealed but Diessel, which has around 180 employees, expects to generate sales - excluding synergies - of approximately €33 million in 2004.
GEA will take on the company's staff, fixed assets and the majority of its order book.
The agreement is still subject to approval by the German antitrust authorities.
GEA also intends to buy Colby Powder Systems, a division of Siemens Dematic, which builds integrated powder-handling and powder-filling equipment for the milk processing industry and the production of baby food.
GEA's preliminary sales in financial 2003 totaled EUR8.2 billion. It claims to be market leader in 90 per cent of its markets and employs 14,500 people internationally.