Nissei Plastic Industrial is to buy Italian machinery maker Negri Bossi in a move that will extend the Japanese company’s reach and add large-tonnage injection moulding machines to the portfolio.
The Nissei board announced on 21 November that it expects to buy 75% of Negri Bossi shares by January 2020. The remaining shares will be purchased “within a few years”. The announcement did not specify how much Nissei will pay per share.
Nissei’s announcement follows a Plastics News story published at K 2019 in Dusseldorf, Germany, breaking the news that Negri Bossi was to be sold.
Negri Bossi has changed hands before. In 2014, another Italian plastics equipment major, Sacmi Group, sold Negri Bossi to Kingsbury Corp., a machinery firm based in Rush, New York. AuSable Capital Partners of Santa Monica, California, also bought a stake in the company.
Kingsbury was the majority shareholder, owning 99.9% of Negri Bossi, according to the news release.
Milan-based Negri Bossi posted €94.5 million ($104.6m) in sales for 2018, but also €1.8m ($2m) in net losses. Sales in 2017 were €105.6m ($116.9m), with losses of €165,000 ($182,608).
Negri Bossi has about 350 employees across two manufacturing sites in Italy, with one in India and another in China. It has a range of injection moulding machines up to 7,000 metric tonnes, outpacing the Nissei range, which goes up to 1,300 tonnes.
Negri Bossi’s product portfolio also includes the Sytrama-brand of Cartesian robots and other automation equipment.
In addition, Negri Bossi has sales in Europe, Russia, Africa and India, where Nissei’s sales and service network has been weak, the Japanese company said. At the same time, Nissei will provide more strength in the United States, Japan, China and elsewhere in Asia, where Negri Bossi has had limited exposure.
Regionally, China is Nissei’s strongest market, the company told Plastics News in an interview at K. It sells around 1,200 injection presses annually there. Globally, Nissei sells about 3,500 units a year.
Nissei said Negri Bossi’s access to its facilities will lead to more efficient production, citing the Italian company’s dependence on outsourcing. Other expected synergies between the two machinery makers include improvements in production capacity, shorter delivery times and cost reductions achieved through shared supply chains.
Worldwide, Nissei has more than 1,200 employees. Sales for fiscal 2019, ending March 31, totaled about ¥44 billion ($405.9m). Approximately 76% of sales were from injection moulding machines, according to company figures.
Nissei said it would be “difficult to predict” group sales following the acquisition.