GERMANY, Oberlahr. Marel announces an agreement to acquire German food cutting technology provider Treif Maschinenbau GmbH. The two companies have a great strategic and cultural fit with complementary product portfolios and geographic presence, creating a strong platform to enhance further growth.
This is is a great addition to Marel, strengthening the full-line product offering, increasing standard equipment sales and leveraging aftermarket potential with Marel’s extensive global reach and local services in all regions. Like Marel, Treif is highly focused on innovation and cutting-edge technology, backed by an experienced and committed team and long-standing partnerships with customers.
Treif’s product portfolio in the cutting segment, portioning, dicing and slicing is highly complementary with Marel’s product portfolio. The transaction will enhance Marel’s full-line offering for the meat industry, as well as its other segments focused on improving automation, food safety and flexibility for consumer-ready product offerings. United, the two companies are in a stronger position to drive further growth, providing better value for both current and future customers.
Marel has agreed to acquire the entire share capital of the company, including all relevant business activities of the group. The purchase price on cash and debt free basis (enterprise value) will be paid with € 128 mill. in cash and 2.9 mill. Marel shares. The closing of the acquisition is subject to customary closing conditions, including anti-trust approval, which is expected to take place later in the year.
The acquisition will be financed through Marel’s strong balance sheet, existing credit facilities and available treasury shares that Uwe Reifenhäuser, current owner and CEO, will hold with a lock-up period of 18 months. Pro forma leverage following completion of the acquisition is estimated to be 1.2xnet debt/EBITDA, compared to 0.6x at the end of 2Q 2020 and the targeted capital structure of 2-3x net debt/EBITDA. The acquisition is fully in line with Marel´s previously announced 2017-2026 growth strategy, of 12% average annual increase in revenues through a balanced mix of organic and acquired growth.