XALOY: Takeover of New Castle Industries
XALOY, which is part of the Saurer surface technology division, acquired New Castle Industries active in the production of screws and cylinders from Ampco-Pittsburgh Corporation, USA. The weakness of the American market has led to a considerable over-capacity in the plastics machinery industry in the last two years. The acquisition of New Castle will result in speeding up the necessary consolidation and capacity adjustment in this market which is of importance for XALOY. Synergies in production, marketing and administration will provide considerable added value for XALOY in view of Saurer’s planned divestment of surface technology.
New Castle has a strong market position in the USA in the component field (cylinders, screws and rolls) for plastification technology and produces a turnover of about approximately US$25 million with 234 employees. The acquisition price is approximately US$17 million.