Pet food packaging machinery producer KHS USA, Inc. will buy the assets of Scandia Packaging Machinery Co., based in Fairfield, New Jersey, USA. This acquisition will enable KHS’ North American subsidiary to expand its portfolio to include compact cartoners and secondary packaging machines. At the same time, access will be granted to several new market segments where KHS USA, Inc. has been inactive; among them candy, cosmetics, and entertainment media. The packaging systems manufacturer will operate as KHS USA, Inc. and manufacture equipment in Sarasota, Florida, USA.
“There’s a trend towards smaller single-serve products,” segment,” said Donald Deubel, vice-president and business unit leader at KHS USA, Inc., in a press release “In taking over Scandia, an expert in compact packaging machines, we’re developing attractive growth areas in this very.”
Founded in 1918, Scandia is specialized in system solutions which include cartoners, film overwrappers, multipackers and case packers. Besides gaining access to new markets and expanding its portfolio, KHS USA, Inc. can vertically integrate existing products through the purchase. This allows further value creation stages in the supply chain to be assimilated and gaps on the market to be closed.
As part of the asset deal, KHS USA, Inc. will acquire the system portfolio and additional equipment as well as machine expertise and the company’s customer base.
“Scandia has a very good reputation in its fields of expertise,” said Deubel. Much of its business is from returning customers.”
Following a transition period of up to 60 days, during which current orders will be processed: all production will be transferred to KHS USA, Inc.’s facility in Sarasota, Florida. In the future, former Scandia president Bill Bronander III will manage business development and sales as his primary responsibility.
Existing Scandia customers will benefit from KHS’ extensive range of services in North America which encompasses technical support and maintenance. KHS USA, Inc. will be presenting one of the first systems from the acquisition at Pack Expo International in Chicago, Illinois from October 14–17, 2018.
About the KHS Group
The KHS Group, which is headquartered in Dortmund, Germany, is a manufacturer of filling and packaging systems for the beverage, food and non-food industries. The group includes the following companies: KHS GmbH, KHS Corpoplast GmbH, NMP Systems GmbH and numerous subsidiaries worldwide. Founded in 1971 as a KHS sales organization in New Berlin, Wisconsin, KHS USA, Inc. is one of KHS GmbH’s subsidiaries with production facilities in Sarasota, Florida and Waukesha, Wisconsin.
At its various production sites KHS manufactures modern filling and packaging systems for the high-capacity range. The KHS Group's PET expertise is pooled at KHS Corpoplast GmbH in Hamburg, Germany, where innovative PET packaging and coating systems are developed and produced. NMP Systems GmbH, a wholly-owned subsidiary of KHS GmbH based in Kleve in Germany, designs and markets new, resource-saving packaging systems for PET bottles.
In 2017 KHS and its 5,070 employees achieved a turnover of around EUR1.14 billion within the Salzgitter consolidation. The companies in the KHS Group are 100 percent subsidiaries of the MDAX-listed Salzgitter AG corporation.