On the surface Hauni’s acquisition of the Borgwaldt group looks to be a a good move.
It has acquired a second larger instrument business – filling out its instrumentation portfolio, in addition to its earlier acquisition of Sodim – and acquired the successful Borgwaldt Flavor business.
Integrating the Borgwaldt and Sodim businesses will realise cost savings – but only if there’s a real consolidation effort in premises and staff.
Superficially, Hauni could be accused of mimicking Molins (Tobacco machinery) who bought Cerulean (the largest Instrumentation supplier) several years ago. This would be unfair. Although Cerulean is larger, the acquisition evens up the playing field while simultaneously diminishing competition.
Nevertheless a quick look at the product lines confirms there is product duplication. Both have a range of multiple parameter test stations and a range of manual digital instruments – representing a large portion of sales. How will this be resolved? Borgwaldt has a range of smoking machines, which Sodim does not. Sodim recently agreed to market Burghart’s smoking machines. Borgwaldt and Burghart do not get along and haven’t for some time. It is hard to imagine two instrument businesses selling competing smoking machines under Hauni’s common ownership for long. Will the Burghart line be dropped?
The flavor business does well – albeit within the new Hauni ownership – it looks a little out of place. What does Hauni plan for this?
So what has Hauni really gained and where will it take the business? Does the acquisition strategically fit or is it purely opportunistic? Does Borgwaldt bring to Hauni opportunities or is it the other way round?