KHS USA, Inc., Waukesha, Wis., announced plans to buy the assets of Scandia Packaging Machinery Co., Fairfield, N.J. This new acquisition will enable KHS’ North American subsidiary to expand its portfolio to include compact cartoners and secondary packaging machines. At the same time, Scandia Packaging Machinery gives KHS USA access to several new market segments where it has been inactive, so it can vertically integrate existing products.
“There’s a trend toward smaller single-serve products. In taking over Scandia, an expert in compact packaging machines, we’re developing attractive growth areas in this very segment,” says Donald Deubel, vice president and business unit leader at KHS USA.
As part of the asset deal, KHS USA will also acquire the system portfolio and additional equipment as well as extensive machine expertise and the company’s customer base.
“Scandia has a very good reputation in its fields of expertise. Much of its business is from returning customers,” says Deubel.
The packaging systems manufacturer will operate as KHS USA, Inc. and manufacture equipment in Sarasota, Fla. Former Scandia president Bill Bronander III will manage business development and sales.
Scandia specializes in system solutions, including cartoners, film overwrappers, multipackers and case packers.