Universal Dynamics Inc., the Fredericksburg, Virginia-based unit of global auxiliary equipment company Piovan Group, is buying CMG America Inc., a manufacturer of size-reduction equipment such as granulators, shredders, evacuation systems and power separation executions.
Terms of the deal, announced 15 March, were not disclosed. The acquisition will be completed by the end of the month.
CMG America, based in Clio, Michigan, has been a wholly owned subsidiary of CMG SpA in Budrio, Italy since 2012. It has more than 12,000 units installed in the United States.
"The CMG brand is well-recognised and respected in the plastics industry and has over 40 years of successful innovation and growth worldwide," Stephen Nunn, president of Piovan North America, said in a statement. "This acquisition strengthens Piovan's commitment to its size-reduction group here in North America."
Nunn previously confirmed in a February phone call with Plastics News that Piovan North America will handle the sales and distribution of CMG America products.
CMG's products will be manufactured at Piovan's US headquarters in Fredericksburg, he said. The 110,000-square-foot building opened in October and houses operations for Universal Dynamics, or Una-Dyn, the US auxiliary equipment maker Piovan has owned since 2008.
CMG's size-reduction group of products will be marketed in the US under the Piovan brand, Nunn said.
Over the past year, CMG has been partnering with Piovan at the Fredericksburg site on the production of its equipment and distribution of spare parts throughout the United States.
Parent company Piovan SpA is based in Santa Maria di Sala, Italy. The company has a 20% equity investment in CMG SpA, with potential plans to acquire 100%.
"That was the objective with all of our acquisitions," Nunn said of the group's goal to become a majority shareholder. No deal with the other shareholders of Italy's CMG has been finalised, however.
In September 2018, Piovan purchased an additional 25% stake in Italian subsidiary Penta srl. The company now owns 90% of the materials handling company, though it has held a majority stake since 2015.
In the past 15 years, the company has become a multinational organisation with seven global manufacturing facilities, 29 service and sales companies, and an international distribution network covering 70 countries.
Companies in the Piovan Group are Una-Dyn, Fdm, Aquatech, Penta, Progema and Energys. It has a direct workforce of 1,044 people worldwide.
Piovan has been listed on the Italian stock exchange, Borsa Italiana SpA, since October 2018. The group reported total sales, including other income, for 2018 at €247.8m. Net profit for the year was €25.5m.