GEA Group to acquire Membraflow Group
Bochum, September 15, 2005: GEA Group Aktiengesellschaft is to strengthen its Mechanical Separation strategic business unit, which forms part of the Process Equipment segment, by acquiring the Membraflow Group with effect from October 1 this year. Membraflow produces and installs membrane filtration equipment, generating sales of approximately EUR 9 million and excellent profitability. As soon as it has been acquired, Membraflow will make a positive contribution to GEA Group's earnings-per-share figures. The company, which is based in Aalen-Essingen near Stuttgart, Germany, employs 34 people. "By acquiring Membraflow, we are adding another key process to our leading expertise in centrifugal separation technology. This will strategically enhance our portfolio and enable us to grow in new markets", stressed Peter Schenk, a member of GEA Group's Executive Board.
The company's products are already being used for specialty mechanical engineering applications in the food, chemical and pharmaceutical industries in conjunction with separators and decanters manufactured by the GEA Group subsidiary Westfalia Separator. In the food sector, its main market, for example, its biggest customers are engaged in the production of gelatine and starch milk. However, Membraflow also enjoys an excellent reputation among winemakers, dairy businesses and fruit-juice producers. Although the company's business is still centered on Europe, its strongest growth is coming from the U.S. and Asia. Membraflow is one of the three largest players in the global membrane filtration market, which is estimated to generate sales of roughly EUR 100 million a year and is forecast to grow rapidly over the next few years.
In 2004, GEA Group Aktiengesellschaft reported consolidated sales of approximately EUR 4.1 billion and employed roughly 17,000 people. With sales in excess of EUR 1 billion, Process Equipment was the second-largest segment and, with a pre-tax return on sales of over 10 percent, the most profitable.
