DBAG sells Romaco Group to Chinese strategic

The GP will initially sell 75.1% of the company for EUR100 million ($109 million). The remaining 24.9% will transfer to the Chinese company over the next three years as part of a measured transition to new ownership. The deal, which is subject to regulatory approval, values the company at EUR133 million, according to a filing.

Headquartered in Germany, Romanco manufactures system solutions largely for the pharmaceutical market. Its product portfolio includes granulating and coating machines, tablet presses, blister and strip packaging machines, and tube filing machines. It also supplies customers in the cosmetics, food and chemicals industries.  

DBAG bought Romaco from the US-listed Robbins & Myers in 2011. Under its ownership, Romaco acquired industry peers Kilian, Innojet and Medipac and also sold FrymaKoruma. In addition, five sales and service centers were opened in China, France, Russia, Brazil and the US. Romanco’s revenue reached EUR134.3 million last year, up from EUR126.3 million in 2015. Net profit rose from EUR37.7 million to EUR42.4 million over the same period.

Established in 2000, Shenzhen-listed Truking Group makes plants and equipment for the customers in the pharmaceuticals industry, specializing in the processing and filling of sterile and non-sterile pharmaceutical liquids. Revenue increased 6.35% year-on-year to reach RMB1.03 billion ($149 million) in 2016, while net profit dropped 6.69% to RMB143 million.

“We are confident that the acquisition of Romaco represents a win-win situation for all the parties concerned. Romaco will benefit from the change in ownership through an increased share of the Chinese market and Truking will also be able to exploit outstanding opportunities for growth on European and transatlantic markets,” Yue Tang, chairman of Truking, said in a statement.

Founded in 1965, DBAG focuses on mid-sized industrial companies in Germany. At present it has approximately EUR1.8 billion assets under management and has invested in more than 300 companies.

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