GERMANY – GEA, one of the largest suppliers of process technology for the food industry has acquired the Italian Pavan Group, a leading supplier of extrusion and milling technology for processing of all kinds of pasta, snacks and breakfast cereals.
Pavan Group had in 2016 generated revenue of around US$182.5 million, with EBITDA of almost US$34.14 million. It generates some 40% of its revenue in Europe, followed by America with 27% and Asia with 17%.
The company, which has its head offices in Galliera Veneta near Padua, employs staff of around 680 several production sites in Italy and China.
“The acquisition is an important milestone in our stated growth strategy of expanding GEA’s activities in the area of food processing.
With its extrusion know-how the Pavan Group builds an attractive platform for us to extend the technology portfolio.
In strategic terms, therefore, the company is an excellent match for us and will help to promote growth at GEA going forward,” explained Jürg Oleas, CEO of GEA Group Aktiengesellschaft.
“Building on Pavan’s 70-year expertise, its broad product range and sustained investment in research and development, our aim is to grow business continuously, e.g. in geographical terms too.
In the future, this will enable us to offer our customers not only new, high worth and innovative process as well as automation solutions for deployment in stand-alone installations, but also complete turnkey systems.
With regard to organization, we intend to integrate the new venture in our Business Area Equipment, where we will establish a dedicated product group under the name of Pasta, Extrusion & Milling.”
“With GEA’s extensive sales and service network, we will be able to open up new markets for our solutions across the whole world.
As a globally established supplier of systems for the food processing industry, GEA will provide us with ideal growth opportunities,” said Andrea Cavagnis, CEO of Pavan S.p.A
The transaction is however still subject to approval by the competent antitrust authorities and both parties have agreed to keep the purchase price confidential. It will be completed in the course of 2017.
