Marel to acquire MPS meat processing systems

 

Marel has agreed to acquire MPS meat processing systems for €382 million (US$405.1 million) on a debt and cash-free basis.

In line with the company's growth strategy, the acquisition enhances Marel's position as the leading global provider of advanced equipment and solutions to the poultry, meat and fish industries.

The move supports Marel's full line offering in the meat processing industry and contribute to a more balanced revenue divided between industry segments and geographies. On a pro-forma basis, the company's meat segment will contribute to around 30% of revenue and EBITDA following the acquisition.

Headquartered in the Netherlands, MPS is a leader in primary processing solutions for the pork and beef industry. The company has recently demonstrated solid growth and profitability, with estimated revenue for 2015 to be close to €150 million (US$159.1 million) and EBITDA at nearly €40 million (US$42.4 million).

"MPS is a great complementary fit with Marel," said Arni Oddur Thordarson, the CEO of 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."

"The combination of MPS and Marel is in many ways similar to the combination of Stork Food Systems and Marel eight years ago, that has stimulated organic growth and resulted in great solutions and value to Marel's customers and shareholders," Thordarson added.

The completion of the acquisition is expected to happen in the first quarter of 2016.