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JBT’s Increases Acquisition Offer to Marel

John Bean Technologies Corporation (JBT) elevates its bid to acquire Marel, a peer in the food equipment sector. Announced on January 19, the new offer proposes €3.6 ($3.91) per share, surpassing JBT’s previous bid of €3.4 per share.

Anticipated Closure and Valuation of the Deal

Upon successful completion, JBT anticipates finalizing the acquisition in the latter half of 2024. This revised proposal values Marel at €2.7 billion ($2.94 billion), with an overall enterprise value approximating €3.5 billion.

Statements from JBT and Marel Executives

Brian Deck, CEO of JBT, remarked on the constructive dialogues leading to this announcement. He anticipates effective collaboration in due diligence and formalizing the takeover offer. Deck also highlighted the potential operational and revenue synergies enhancing value creation in the combined entity.

Shareholder Arrangements and Company Structure Post-Acquisition

In the proposed arrangement, Marel shareholders would receive €950 million in cash and retain about 38% ownership in the newly formed JBT Marel Corp. The corporate headquarters will remain in Chicago, with additional headquarters in Europe and a global technology center in Gardabaer, Iceland.

Eyrir Invest’s Acceptance and Marel’s Response

Eyrir Invest, holding a 24.7% stake in Marel, has accepted the offer for its shares. Marel, acknowledging the proposal, sees merit in the merger, as stated by Chairman Arnar Thor Masson. While valuing Marel’s independent strategy, the board recognizes the benefits for stakeholders in the combined entity.

Terms and Conditions for Marel Shareholders

Marel shareholders are offered choices between cash, JBT stock, or a combination thereof. Key conditions include Marel’s board recommendation, satisfactory due diligence, standard regulatory approvals, and acceptance by a majority of Marel’s shareholders.

Final Approvals and Stock Listing Plans

Final approvals are pending from JBT’s board and its shareholders, with plans for a secondary stock listing on Nasdaq Iceland, contingent on local regulatory sanction.

Corporate Profiles of JBT and Marel

JBT, with a workforce of approximately 5,100 across 25 countries, reported revenues of $1.6 billion in 2023. Marel, employing over 8,000 in more than 30 countries, posted revenues of $1.93 billion in 2023.

Historical Context of JBT’s Offers

JBT’s journey to acquire Marel included an initial rejected proposal and a subsequent bid of €3.4 per share. Following a granted extension, this latest offer marks JBT’s continued pursuit of Marel.

JBT Corporation’s Marel Takeover: A Deal on the Brink?

Extended Deadline Raises Questions on the Future of JBT Corporation’s Bid for Marel

Chicago, IL – In a move that has raised eyebrows in the business community, JBT Corporation, a leader in food and beverage technology solutions, has been granted an extension until January 19, 2024, for its potential takeover bid of Marel hf. This extension, coming from the Financial Supervisory Authority of the Central Bank of Iceland, follows JBT’s initial non-binding proposal to Marel’s Board on November 24, 2023, and a subsequent revision on December 13, 2023. But with the deadline extension, speculation is mounting over whether the deal will fall through.

JBT’s Ambitious Acquisition Plans May Face Hurdles

JBT’s potential acquisition of Marel aligns with its strategic growth plans, aiming to create significant value through synergies. However, the need for an extended deadline suggests potential complexities or reconsiderations by JBT’s management. Although JBT is known for its disciplined approach to valuation and financial health, the uncertainty surrounding the finalization of this deal casts a shadow over its strategic merger and acquisition goals.

Uncertainty Prevails as JBT’s Board Yet to Approve Formal Offer

As of now, JBT’s Board of Directors has not sanctioned a binding offer for Marel hf. This lack of commitment, despite the extended deliberation period, fuels speculation about the viability and desirability of this acquisition. The business community is keenly observing to see if these discussions will culminate in a formal offer or if JBT will retreat from the negotiation table.

Goldman Sachs and Legal Teams Engaged Amidst Uncertainty

In navigating this complex transaction, JBT Corporation has engaged Goldman Sachs Co LLC as its financial advisor, while LEX and Kirkland & Ellis LLP are providing legal counsel. Their involvement is crucial as JBT navigates the intricacies of this high-stakes business maneuver.

JBT’s Worldwide Operations Continue Amidst Takeover Speculations

Despite the looming uncertainty of the Marel acquisition, JBT Corporation maintains its robust global presence, operating in over 25 countries and employing around 5,100 people. The company’s diverse portfolio, including technology solutions for the food & beverage industry and a strong base in recurring operations, highlights its resilience and adaptability in the face of potential strategic shifts.

This article is based on information from a press release by JBT Corporation, with the business world keenly awaiting the outcome of this potential takeover.

Why Marel Rejected JBT Acquisition Bid

Marel Declines JBT’s Acquisition Offer, Prioritizing Shareholder Value and Strategic Goals

Marel, a leading Icelandic food equipment company, recently made headlines by declining a significant acquisition offer from Chicago-based John Bean Technologies (JBT) Corp.

This key decision, announced on November 28, showcases Marel’s commitment to its shareholders and strategic business objectives. JBT’s non-binding proposal, made on November 24, valued Marel at 3.15 euros per share, including all shares and existing debts.

However, after a comprehensive review, Marel’s board unanimously determined that the offer did not reflect the company’s true market value and involved substantial transaction risks. This move by Marel underscores its dedication to evaluating any future mergers or acquisitions that more accurately represent its worth and align with its long-term industry consolidation strategy.

Marel’s focus on securing the best interests of its stakeholders and maintaining its position as a key player in the food equipment industry is evident in this decision, signaling its openness to strategic growth opportunities that meet its stringent criteria.

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Marel Company Overview

Founded in 1983 in Iceland, Marel has grown into a multinational food processing company, specializing in advanced equipment and solutions for the poultry, meat, fish, and alternative protein sectors. With strategic acquisitions and innovation, it employs around 8,000 people and operates in over 30 countries.

John Bean Technologies (JBT) Company Overview

Founded in 2008, John Bean Technologies (JBT) is a global leader in technology solutions for the food, beverage, and aviation industries. Based in Chicago, it employs about 7,200 people and operates two main segments: FoodTech and AeroTech, offering comprehensive products and services across these high-value industries.