JBT Corporation is all set to takeover Marel, a full line supplier of innovative solutions and services for the poultry, meat and fish processing industries. When combined together, it will create a leading global food and beverage technology solutions giant.
The purchase offer values Marel at €2.7 billion (US$2.94 billion), but is however subject to favorable acceptance and recommendation by the Marel Board of Directors.
Brian Deck, President and CEO of JBT Corporation said, “Together, our companies would be best positioned to meaningfully help customers create efficient, higher quality end products with a combined focus on sustainable solutions that make better use of the world’s precious food, beverage, water, and energy resources. JBT remains open to further dialogue with the Board of Marel to design a win-win outcome.”
The merger would bring together 2 renowned companies with complementary product portfolios, market leading brands, and superior technology to create a leading global food and beverage technology solutions company. Customers of both companies would benefit from the enhanced fuller line processing capabilities and digitally supported aftermarket parts and service enabled by the combined company’s global reach. The combination offers substantial synergies by providing attractive cross-selling and go-to-market potential, meaningful cost savings opportunities, and further margin enhancement, positioning both JBT and Marel to benefit from significant upside potential.
JBT is prepared to provide proportional representation for Marel on the combined company’s Board of Directors. According to a statement by JBT, “The new ownership position would provide substantial value creation opportunity for Marel shareholders to benefit from the ongoing success of the combined company in addition to the immediate liquidity offered by the cash portion of the consideration. Regardless of which structure is ultimately deemed to be the most suitable, JBT remains firmly committed to maintaining a strong balance sheet and preserving future strategic flexibility.”
As such, Marel shareholders, in the takeover offer, would have the flexibility to receive, in exchange for their Marel shares, either cash or JBT shares or a combination of both. In JBT’s latest offer to Marel, the latter shareholders will receive €950 million (US$1.033 billion) in cash and hold 38% share in the combined company.
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