G.D will acquire the instrumentation and tobacco machinery (I&TM) business of Molins PLC for £30 million ($38.76 million), subject to customary pre-closing conditions.
With 2016 revenues of approximately £40 million, the I&TM division is a global player in the design, development and manufacturing of secondary tobacco processing machinery, under the brand name Molins, as well as a leading player in process- and quality-control instruments and analytical smoke constituent-capture machinery, under the brand name Cerulean.
Following the acquisition, both Molins and Cerulean trademarks will be transferred to G.D.
G.D. believes the acquisition of the I&TM business, will strengthens its position in the tobacco machinery industry while increasing its product offering in the instrumentation segment.
The IT&M division is headquartered in Milton Keynes, United Kingdom.
Part of the Coesia Group of Bologna, Italy, G.D is a world leader in making and packing machines for tobacco industry. It is the only manufacturer able to supply complete high-speed production lines.
According to G.D, the acquisition of Molins allows G.D to count on the support of a consolidated company to further enhance its portfolio in the tobacco machinery market.
Molins PLC said the sale provides an opportunity to accelerate the group’s strategy to be a global leader of packaging solutions and will provide the platform to invest in the group’s existing Langen and Molins Technologies businesses and acquire complementary businesses.
“Molins has a presence in large and attractive growth markets, an enviable portfolio of global multinational customers, an impressive range of innovative technologies and above all a very talented and engaged workforce,” said CEO Tony Steels.
“With the proceeds from the sale of I&TM, I am even more confident about the growth opportunities for the group.”
Completion of the deal is subject to conditions including the approval of shareholders at a general meeting on June 27.