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Pet Food Processing / Pet Food News / Pet Food Market Trends / Pet Food Equipment
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Photo by 88studio | BigStockPhoto
on September 24, 2017

Private equity firm to sell processing technology company

Pan-European private equity firm IK will sell Schneck Process to Blackstone investment firm.

IK Investment Partners (IK), a Pan-European private equity firm, has announced that the IK 2007 Fund has reached an agreement with private equity funds managed by Blackstone to sell Schenck Process, a measuring and process technology company.

Headquartered in Darmstadt, Germany, Schenck develops and manufactures solutions for a range of industrial processes including weighing, feeding, conveying and filtration. Schenck serves a worldwide customer base across a variety of industries, including food, chemicals, mining and construction.

“Schenck is an innovative and unrivalled leader, and we see considerable opportunity to grow the business both organically and by acquisitions in its various end markets,” said Lionel Assant, head of European private equity at Blackstone, in a press release. We are excited to team up with management and accompany Schenck in the next stage of its development.”

IK Investment Partners is a Pan-European private equity firm focused on investments in the Nordics, DACH region, France and Benelux. Likewise, Blackstone is a global investment firm focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds.

“During the IK 2007 Fund’s ownership, Schenck has transformed its business focus from a mechanical manufacturer to a service and integrated solutions provider, achieved significant growth by expanding the product portfolio and entering new markets both organically and through selected add-on acquisitions,” said Detlef Dinsel, partner at IK Investment Partners and advisor to the IK 2007 Fund. “It has been a pleasure working with the management team, and we wish them the very best as they continue on their growth trajectory.”

Financial terms of the transaction are not disclosed.

Growth in the food processing equipment market

The sale of Schenck Process comes at an opportune time, as the pet food processing equipment market is projected to grow at a CAGR of 3.5 percent in the next six years to reach a market of US$4.27 billion by 2022, according to a FPSA global forecast 2022 report.

 The growth is attributed to the increase in the global demand for pet food supplies, especially in growing economies such as China, Brazil, Argentina and India, owing to a growing urbanization that has stimulated a desire to keep pets and has resulted in the increasing usage of processed pet food products; and advancements in the manufacturing processes and technologies.

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