Hennecke GmbH, a German machinery company, is purchasing Italy-based OMS Group of Milan in a deal that is expected to close in December.
"With this purchase, two technological leaders in the polyurethane machinery business are joining forces to open up opportunities for further growth," said Rolf Trippler, Hennecke's managing director.
His view was echoed by Enrico Lombardini, chief executive of OMS.
"Joining forces will provide further profitable growth," he said.
Lombardini and Andrea Mariani, the OMS executive management team, will retain their responsibilities after closing, the companies said. They added that jobs in both companies will be maintained.
Trippler added that the companies' product portfolios in the various segments complement each other. 'We are expanding global technology and market leadership,' he said.
Polyurethane Process Industries (PPI), the US distributor for OMS welcomed the news.
"Based on the merger plans, we anticipate positive changes for PPI and our customers as the two companies combine," said Mark Clark, general manager of Greensburg, Pa.-based PPI. "Together, Hennecke and OMS Group will have one of the broadest portfolios in the industry, and will be positioned to become one of the strongest and most reliable suppliers of machinery for polyurethane-based applications."
Clark added that the range of equipment and market strengths of the two companies complement each other.