Hengeler Mueller advises GEA on takeover of Pavan

27. September 2017

GEA Group (“GEA”), an international engineering group based in Düsseldorf, has acquired the Italian Pavan Group (“Pavan”), a leading supplier of extrusion and milling technology for processing all kinds of fresh and dried pasta, pelleted snack products and breakfast cereals. The transaction is still subject to approval by the competent antitrust authorities. It is likely to be completed in the course of 2017.

With head offices in Galliera Veneta near Padua, Pavan employees a staff of around 700 at several production sites in Italy and China. In the 2016 financial year, Pavan generated revenue of around EUR 155 m and an EBITDA of almost EUR 29 m. The group exports to 130 countries and generates some 40 percent of its revenue in Europe, followed by America with 27 percent, Asia with 17 percent, and Africa and the Middle East with 14 percent. Previously, Food Technologies, a company of the Luxembourg-based Alpha Group held the majority stake in the group.

GEA is one of the largest suppliers of process technology for the food industry and a wide range of other industries. The company focuses on process technology and components for sophisticated production processes in various end-user markets. In 2016, GEA generated consolidated revenues of about EUR 4.5 bn. The food and beverages sector, which is a long-term growth industry, accounted for around 70 percent. As of March 31, 2017, the company employed about 17,000 people worldwide.

Hengeler Mueller advised GEA on the transaction. The Hengeler Mueller team was led by partner Matthias Hentzen (Düsseldorf) and included partner Andreas Hoger (Frankfurt) as well as associate David Huthmacher (Düsseldorf) (all Corporate/M&A). Martin Rothfuchs and Holger Düchting were responsible for the transaction within GEA’s in-house legal department.