German packaging and bottling manufacturer Krones is set to acquire Switzerland-based injection molding machine supplier Netstal.

With a workforce of more than 500 employees, Netstal provides injection molding machines to the beverage (PET preforms and caps), medical, and thin-wall packaging markets.

In the 2023 fiscal year, Netstal reportedly generated revenue of more than €200m. The profitability of the company is currently below the Krones Group level, but this gap is expected to be closed over the coming years.

Netstal will be reported as part of the Filling and Packaging Technology segment.

The final signing of the transaction is scheduled for beginning of February 2024. Following this, the transaction is subject to approval under the relevant antitrust legislation. Krones expects the transaction to be completed within the first half of 2024.

Krones will finance the purchase with existing liquid funds, but also may take advantage of partial debt financing. The companies were previously strategic partners.

A mutually beneficial acquisition

Netstal’s PET and Cap businesses complement Krones’ product portfolio for the beverage market.

In terms of PET closed-loop solutions, Krones covers all technologies required from injection molding to PET container production through to filling/packaging and recycling.

The medical and thin-wall packaging segments of Netstal further support Krones’s strategy to diversify into the medical/pharma market as well as into food and home-personal-care applications.

In turn, Netstal will retain its business responsibility within Krones, while benefitting from an international scale-up.

In early 2023, Krones digitised contract lifecycle management for its headquarters in Neutraubling, Bavaria.