Veit will retain the division's base at Vlotho and its staff, but the management team will now be led by Günter Veit and Dick Töwe.
The deal will allow both Veit and Kannegiesser to concentrate on their core businesses.
Veit targets the garment industry and includes leading brands for ironing and finishing equipment in its portfolio and the new division will improve its service to customers.
Kannegiesser will focus on developing world markets for its six German factories.
