Diverse manufacturer GEA says it is exploring sale as it focuses on core food, chemical and pharma sectors
Diverse manufacturer GEA said it is exploring a possible sale of GEA Bock as part of the group’s continued focus on its strategic core markets – the food, chemical and pharmaceutical industries.
The firm reiterated its intentions at Capital Markets Day in September that it plans to divest ’selected activities’ in its Farm Technologies and Refrigeration Technologies division. The firm said: ”On this basis, the GEA Bock business, which is part of the Refrigeration Technologies division, will no longer be treated as a core business of the GEA Group. A sale is expected to take place in the course of 2020. Both employee representatives and employees have been informed about the intended sale.”
GEA Bock makes open and semi-hermetic piston compressors in the lower and medium refrigeration capacity range for stationary and transport-related cooling applications. The company employs around 300 people worldwide and generated sales of around €90 million in the 2018 financial year. Two-thirds of these employees work at the company’s headquarters in Frickenhausen, Germany. The company has three additional locations in the Czech Republic, India and China.
Stefan Klebert, CEO of GEA Group said: “Since becoming part of the GEA Group, the business has developed very encouragingly and today generates significantly more sales than when it was acquired by GEA in 2011. However, the time has come to make important decisions for the future of this business and in the context of the new structure of the group as a whole. Unfortunately, the synergies in the areas of portfolio, customers and development envisaged at the time of acquisition have not materialised. This makes it difficult to sustainably develop the GEA Bock business within the GEA Group. GEA is therefore convinced that GEA Bock has significantly better development potential outside the GEA Group structure and strategy.”