Injection molding and extrusion equipment provider Milacron has agreed to acquire US-based CanGen Holdings.
CanGen supplies highly engineered aftermarket process control components for extrusion and injection molding applications.
With $20m in sales, CanGen operates two subsidiaries including Canterbury Engineering and Genca.
The addition of CanGen is expected to improve Milacron's aftermarket capabilities including a broadened product offering into downstream tooling, proprietary rights to over 185,000 unique designs and drawings, and a regional center for parts and service in the southeastern US.
Canterbury and Genca currently serve customers in screws & barrels, tooling and cross-heads, and other machined metal components products market.
Milacron CEO Tom Goeke said:"CanGen fits perfectly with our core growth strategy of accelerating lifecycle sales through consumable products and aftermarket service. This acquisition brings a complementary product portfolio and customer base to Milacron, further building upon our fully integrated customer-driven solutions.
"Additionally, CanGen provides an entry into the extrusion market for rubber products, which opens up a new set of customers for Milacron's existing product range."
The financial terms of the transaction are not disclosed.
Subject to customary closing conditions, the acquisition is expected to be completed by the end of this year.
CanGen CEO Paul Cusolito said: "The combination offers a great opportunity for CanGen and its employees to serve a significantly larger customer base while obtaining access to the extensive resources available at Milacron.
"We look forward to working with the Milacron team to continue building upon our available product offerings and value-add to our customers. This is a great fit for the future of our business and our employees."
Milacron recently launched a new adaptive process system (APS) for its Mold-Masters melt delivery control technologies.
The APS with adaptive auto tuning heat control as well as an adaptive motor control with auto tuning for maintaining precise linear movement can be used in Milacron's controls products including hot runner controllers, E-Drive, Sequential Valve Gate, SEVG, E-Multi, SmartMold, besides many others.
