KHS USA, Inc. is to buy the assets of Scandia Packaging Machinery Co., based in Fairfield, New Jersey. 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, access will be granted to several new market segments where KHS USA, Inc. has been inactive; among them candy, cosmetics, and entertainment media. The packaging systems manufacturer will operate as KHS USA, Inc. and manufacture equipment in Sarasota, FL.
“There’s a trend towards 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, Inc. Founded in 1918, Scandia is specialized in system solutions which include cartoners, film overwrappers, multipackers and case packers. Besides gaining access to new markets and expanding its portfolio, KHS USA, Inc. can vertically integrate existing products through the purchase. This allows further value creation stages in the supply chain to be assimilated and gaps on the market to be closed.
As part of the asset deal, KHS USA, Inc. will 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,” explains Deubel. Following a transition period of up to 60 days, during which current orders will be processed: all production will be transferred to KHS USA, Inc.’s facility in Sarasota, Florida. In the future, former Scandia president Bill Bronander III will manage business development and sales as his primary responsibility.
Existing Scandia customers will benefit from KHS’ extensive range of services in North America which encompasses technical support and maintenance. KHS USA, Inc. will be presenting one of the first systems from the acquisition at Pack Expo International in Chicago, Illinois from October 14–17, 2018.