Marel acquires Treif for more than €128 million
Marel is pleased to announce 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. "We are pleased to announce the agreement to acquire German processing equipment provider TREIF, a true hidden champion in our industry. With this transaction, two technological leaders with a shared passion for innovation and a vision to transform the way food is processed, join forces.
We have followed TREIF for years and been impressed by their cutting-edge technology, talented team and success in customer engagement, ranging from small shops to leading blue-chip international food companies. Together, we are better positioned to meet customer needs in terms of automation, flexibility and time to market for consumer-ready products. TREIF’s leading cutting technology is highly complementary to Marel’s existing product portfolio. TREIF’s largest business segments today are within meat and baked goods, and we believe their technical capabilities can be cascaded to Marel’s poultry and fish segments and accelerate our innovation roadmap," declared Árni Oddur Thordarson, CEO of Marel.
TREIF, a family-owned business headquartered in Oberlahr, Germany is at the forefront in solutions and services focused on portioning, dicing, slicing and cutting of food. The company was founded in 1948, focusing on cutting solutions for the meat industry, which continues to be its largest segment. With annual revenues of over EUR 80 million and around 13 million in EBITDA, TREIF has an impressive track record of continuous product innovation and steady growth with 500 employees in facilities in Europe, US, and China. Its long-standing customer base is diversified, ranging from specialist retailers to blue-chip international food processors.
"I am confident that we have found a great home for TREIF’s legacy and secured the long-term success of our leading technology, our customers and our committed employees. My father founded TREIF more than 70 years ago with the vision to offer the best possible cutting technology in the meat segment, later expanding into dairy, baked goods and other food segments in need of precise cutting technology. Our passion has always been to deliver innovative, reliable solutions with a strong value proposition. As a result, we have one of the largest food cutting product portfolio and a loyal customer base across both the retail and processing industry," commented Uwe Reifenhauser, CEO of TREIF.
Marel has agreed to acquire the entire share capital of TREIF Maschinenbau GmbH, including all relevant business activities of the group. The purchase price on cash and debt-free basis (enterprise value) will be paid with €128 million in cash and 2.9 million 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 Mr Uwe Reifenhauser, 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.
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