Global alternative asset and private equity investor KKR (NYSE:KKR) a new investment in automated manufacturing solutions manufacturer CMC Machinery. CMC’s solutions improve environmental impact by reducing the consumption of packaging materials, providing innovative e-commerce 3D on-demand packaging, using advanced end-of-line technology.
Giuseppe Ponti, Founder, President and Strategic Business Development Director of CMC Machinery, said:
“We are very pleased to have KKR on board as an investor with a shared vision to inspire the future of packaging and e-commerce. With KKR’s support, we are excited to continue on our journey, expanding our operations which will remain firmly rooted in the Umbria region to address an increasingly global market with sustainable packaging solutions.”
CMC Machinery is based in Italy, and employs a team of approximately 200, specializing in the design and manufacturing of advanced automated packaging solutions for some of the world’s largest retail and logistics companies. Following the transaction, the company will continue to be led by the Ponti family.
According to KKR, the on-demand packaging market has seen strong growth over the past few years as more people around the world shift to purchasing items online, a trend accelerated by the impact of COVID-19. As volumes are expected to grow even further, the environmental sustainability of the related activities is a critical area of focus. CMC Machinery’s innovative 3D technology offers sustainability benefits by producing on-demand custom made boxes that fit the product size, resulting in significant reduction of raw material and void filler used.
The announcement marks the fourth investment in Europe by the KKR Global Impact Fund. KKR announced the closing of the $1.3 billion fund earlier this year, which aims to invest in companies with business models that provide commercial solutions to environmental or social challenges, particularly those contributing measurable progress toward one or more of the United Nations Sustainable Development Goals (SDGs). KKR stated that CMC Machinery contributes to SDG #12, Responsible Consumption and Production.
Stanislas de Joussineau, Director at KKR and Head of Global Impact in EMEA, said:
“CMC Machinery’s market-leading innovation in sustainable packaging aligns well with the objectives of KKR’s mission to invest in companies that are providing solutions to critical challenges. We are excited to have the opportunity to work closely with the Ponti family on this important endeavor to drive innovation and promote sustainability across the global retail sector, particularly at this critical time for the industry as retailers increasingly seek to minimize their impact on the environment.”
Pedro Ramos, Principal at KKR’s Global Impact team in EMEA, said:
“CMC Machinery is recognized as a leader in the sector, a testament to the passion and commitment of the Ponti family and their team, who have seen their factories in Città di Castello grow to supply customers around the world. We look forward to supporting them in scaling even further using KKR’s global platform and resources.”