The executive boards and shareholders of Salzgitter Maschinenbau AG (SMAG) and BMA Braunschweigische Maschinenbauanstalt AG (BMA) have signed a contract for the merger of the two companies. The deal will create a strong group of companies with a focus on internationality situated between Harz and Heide, with an excellent extended portfolio in mechanical engineering and plant construction.
The Mayer family, owners of BMA AG, and the shareholders of SMAG have signed an agreement to merge their worldwide mechanical engineering and plant construction activities. The aim of the merger right from the outset was for the newly created group of companies to establish a more broad-based and stable portfolio. The aim is to achieve further expansion of business activities across sectors by taking advantage of complementary market access and local production facilities. The merger of the two medium-sized companies will create a mechanical engineering and plant construction company with a turnover of approximately € 300 million and 2,000 employees at what currently stands at 27 locations around the world.
The merger of the two companies also facilitates Dr Rolf Mayer’s desire to take a step back from operational business in the future and establish a sustainable future for BMA after he leaves the Board of Management. SMAG and BMA are perfectly suited to one another in terms of their strategic focus and corporate culture. Both companies are unified by a long-standing tradition of constructing machinery and equipment for various industries with a focus on international business activities. The management of the two companies have also been working together for many years. For example, Sebastian Brandes, CEO of SMAG, has been a member of the BMA AG supervisory board for several years.
Dr Rolf Mayer commented: “The merger is the perfect solution for medium-sized companies – a strong regional basis and global activities.” Sebastian Brandes said: “By merging with BMA, we are adding a new sector to our business in the sugar industry, which has been successful for over 160 years, making our collective business base stronger as a result. What BMA brings to the new group of companies is a particular finesse for research and development, as well as market access to Russia, Africa, and North and South America. This makes us better able to overcome the structural challenges in our markets.”
SMAG now holds a majority shareholding in the BMA Group. At the same time, the Mayer family has acquired a stake in SMAG, making them a key shareholder. BMA will become a new “process engineering” division of the SMAG Group, with an independent brand and management. SMAG will also manage the suspension systems and special machine construction sectors.