The Canadian private equity group said it expects the deal to close by 31 March 2013 subject to regulatory approval.
Onex Partners III will make an investment of $340m, of which Onex’s share is about $86m as a limited partner in the fund.
KraussMaffei, based in Munich, offers injection moulding, automation and robotics and extrusion services for the food and beverage packaging industry and is owned by private equity group Madison Capital.
An unnamed Chinese machinery group had also reportedly expressed interest in KraussMaffei Technologies.
Build global presence
“We’re very pleased to be partnering with Onex given its track record and experience in our industry,” said Jan Siebert, chief executive officer of KraussMaffei.
“With Onex's backing, we intend to strengthen our global presence and build on our success at the high-end of the industry.”
KraussMaffei has 4,000 employees, operates manufacturing facilities worldwide and generated €1bn in revenues for the twelve months ended 30 June 2012.
“KraussMaffei is a global leader in each of its three segments, with a decades-long reputation for technology and quality,” said David Mansell, an Onex managing director.
First EU investment
“KraussMaffei is the first European-based investment for Onex Partners III, and, like many of our existing businesses, serves markets globally,” said Tony Morgan, a managing director in Onex’s London office.
The news comes after Onex announced the $813m acquisition of US-based SGS International, a design-to-print graphics services supplier to the consumer products packaging industry earlier this month.
SGS is a vertically-integrated provider of packaging graphics services to branded consumer products companies, retailers and the printers that service them.
Including the KraussMaffei and SGS transaction the fund will be approximately 60% invested.