Marel agrees to acquire MPS meat processing system for €382m

Marel has agreed to purchase the Netherlands-based MPS meat processing systems for €382m.

Marel stated that the two firms have a strategic and cultural fit, with complementary product portfolios and geographic presence, which would enable further growth.

The purchase, which is on a debt and cash-free basis, will bolster Marel’s position as provider of advanced equipment and solutions to poultry, meat and fish industries.

It is estimated that MPS’ revenue for 2015 will touch around €150m, and EBITDA will be close to €40m.

On a pro-forma basis, Marel’s meat segment will contribute to around 30% of the revenue.

MPS has around 670 employees, with primary production sites located in the Netherlands and China, and a sales and service network spread out worldwide.

Marel CEO Arni Oddur Thordarson 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.

“The acquisition is fully in line with Marel’s strategy to be at the forefront of delivering full line solutions to the poultry, meat and fish industries globally. 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”

MPS meat processing system CEO Remko Rosman said: “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.

“Marel and MPS have played an important role in defining the food processing industry and together we will be better positioned to invest in growth and innovation to add value to our current and future customers.”

The acquisition is subject to regulatory approvals. It is expected to close in the first quarter of 2016.

Marel has also entered into an agreement for long term financing arrangement from Raboban for the total Marel group for approximately €670m. The senior loan facilities will mature in November 2020.