600 Group buys Kondia machine tool business

600 Group Plc has acquired the entire manual machine tools business of Kondia, for a total consideration of 50 000 euros.

Kondia, formerly Spain’s largest manufacturer of milling machines, was placed into administration in 2015. The acquisition means the 600 Group now owns the Kondia name, all IP and a large inventory of spare parts worth in excess of the acquisition costs.

For more than 20 years, Clausing, one of the 600 Group companies, sold the Kondia range of FV series milling machines and established it as a leading brand in North America. In 1990, sales of Kondia machines in the USA contributed $3 million in revenues to the 600 Group.

The 600 Group expects to generate revenues immediately from the supply of spare parts in North America as well as the rest of the world where Kondia machines have been sold. In addition, the company intends to start producing the Kondia FV milling machine, which will complement the US-built line of 600 Group machine tools, including drills and saws.

“We are excited about adding another great brand to our lineup of machines and also the opportunity it gives us to grow the Kondia business both in North America and worldwide. This acquisition increases Group earnings immediately, and looking ahead, I’m very confident that our team will build the revenues further as we develop the opportunities we have identified in this business,” said Don Haselton, divisional managing director of the machine tool operations in the UK and US.