Fair Friend Group Acquires MAG
FFG broadens their machine tool capabilities for automotive applications and their footprint in Europe.
Posted: December 28, 2015
"We are proud to become part of FFG, one of the world’s leading machine tool groups. We will benefit from their global footprint and financial strength, while our customers will benefit from the sharing of know-how and technology between our companies, increased production capabilities, as well as local service wherever they are. With our combined offering both groups will increase their attractiveness as business partners.”
The international Fair Friend Group (FFG; Taipei, Taiwan) and MAG IAS GmbH (Eislingen, Germany) have announced that the acquisition of MAG Group by FFG has been completed, having received all required regulatory approvals. FFG is a leading global industrial conglomerate, operating in the fields of machine tool technology, PCB (printed circuit board), industrial equipment and green technology.
With the acquisition of MAG, a leading machine tool manufacturer for the automotive industry, FFG’s machine tool division strengthens its position as one of the premier global machine tool suppliers. The acquisition complements their existing portfolio and will broaden their machine tool offering in the automotive industry. The machine tool division already covers a large variety of industries, including aerospace, railway, mold and die, electronics, and automotive.
With MAG’s seven production facilities, FFG increases their number of machine tool factories across the globe to 51, now covering Taiwan, Germany, Italy, Hungary, Japan, South Korea, China, Switzerland, India and the U.S. with a total of 32 brands. With over 6,000 employees, the machine tool division of FFG, including the MAG Group, generates an annual turnover of more than $2.3 billion.
“We are proud to become part of FFG, one of the world’s leading machine tool groups. We will benefit from their global footprint and financial strength, while our customers will benefit from the sharing of know-how and technology between our companies, increased production capabilities, as well as local service wherever they are,” said Dr. Reiner Beutel, the chief executive officer of MAG. “With our combined offering, both groups will increase their attractiveness as business partners.”
“I am happy to welcome MAG and their employees to our large family. I am confident that their integration into FFG will be beneficial for all of us, and for our customers and suppliers,” added Jimmy Chu, the founder and chairman of the Fair Friend Group.
“This acquisition is an ideal and complementary strategic fit for both our machine tool division and them,” stated Luigi Maniglio, the chairman of FFG Europe, who will also join the MAG management board. “We will strengthen our machine tool offering in the automotive industry and our footprint in Europe, while MAG Group will increase its access, especially to Asian markets. Now that the transaction has been completed, we can start to implement the benefits of the combined businesses, which will position itself among the top three machine tool makers in the world.”
Under the new ownership, the MAG brand will remain unchanged. “MAG is a well-known and established brand for machine tools for the automotive industry, with market-leading technology, loyal customers and excellent employees,” noted Maniglio. “We are glad to add this strong brand to our portfolio and, together with their team, develop it further under the FFG umbrella.”
The parties agreed confidentiality on financial details of the transaction. FFG has been advised by KPMG (corporate finance) and Beiten Burkhardt (legal) during the course of the transaction. MAG has been advised by Freitag & Co. (corporate finance) and P+P Pöllath + Partners (legal).
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