Marel agrees to acquire MPS
Food processing equipment supplier, Marel has agreed to acquire MPS meat processing systems for €382 million on a debt and cash-free basis.
MPS meat processing systems provides primary processing solutions for the meat industry, such as automated slaughter lines for pigs, cattle and sheep. Headquartered in the Netherlands with its main production sites in Holland as well as China, the company’s 2015 revenue is estimated to be close to €150 million and EBITDA close to €40 million.
According to Marel, the acquisition will support the company’s full line offering in the meat processing industry and contribute to more balanced revenue split between industry segments and geographies.
Arni Oddur Thordarson CEO of Marel said: “MPS is a great complementary fit with Marel. We know each other well as we have been partners in several projects in the meat industry around the globe, where MPS has been delivering innovative and automated primary processing solutions and Marel has been delivering the secondary processing solutions with overarching software solutions. Together the companies are stronger and in the position to deliver full line solutions to meat processors around the world.”
Remko Rosman CEO of MPS meat processing system added: “We are excited to become a part of Marel and find a long-term home for MPS and its employees. The complementary nature of our products and footprint and the strength of our combined brands enhance scale and full line offering.”
The completion of the acquisition is subject to anti-trust approvals and closing is expected to take place in the first quarter of 2016.
Parallel to the acquisition, the Marel has also entered into an agreement of long term financing for the total Marel group for approximately €670 million. The financing will provide the company with strategic and operational flexibility to support growth and value creation going forward.