Fair Friend Group, a Taiwan-based industrial portfolio reported it has cleared all regulatory requirements and completed its takeover of MAG Group, the manufacturer of industrial systems and discrete machinery, in particular for automotive engine and chassis components. The parties have not revealed the value of the transaction.
Luigi Maniglio, chairman of FFG Europe, called the acquisition “an ideal and complementary strategic fit for both FFG's machine tool division and MAG. FFG will strengthen its machine tool offering in the automotive industry and its footprint in Europe, while MAG Group will increase its access especially to Asian markets.”
While the MAG brand will remain, Maniglio indicated that combining the businesses would establish FFG among the top tier of the world’s machine tool manufacturers.
Dr. Reiner Beutel, CEO, said MAG would benefit from FFG’s global footprint and financial strength, and customers would benefit from the sharing of methods and technology between the companies, increased production capabilities, and local service.
“With our combined offering both groups will increase their attractiveness as business partners," Beutel said.
MAG is known primarily as a designer and builder of machine tools, including turning, milling, and honing machines, with related automation and software programs, and systems integration services. Among its product lines are VDF Boehringer, Hessapp, Hüller Hille, Modul and Witzig & Frank. In March 2014, it parted with several North American lines (Giddings & Lewis, Cincinnati, and Forest-Liné), in a deal with Paris-based Fives Group in March 2014.
FFG is a conglomerate with holdings in machine tool technology, printed circuit boards, and industrial equipment. Most of its turning, cutting, and grinding machines are distributed under the Feeler brand, but its assets also include the Takamatsu, Citizen Miyano, Waida, Toyota Tsusu, Marubeni, F.T. Japan, EMC Japan, Takeuchi, Mectron, and Yamamoto Sumizawa lines.
When the deal was announced more than a year ago, it was seen as a channel for FFG to accelerate its expansion in the EU market. It will gain seven machine-tool manufacturing plants, giving it a total of 51 worldwide, in Taiwan, Germany, Italy, Hungary, Japan, South Korea, China, Switzerland, India and the U.S.