ATS Automation Tooling Systems (ATS) has agreed to acquire global food and beverage equipment supplier CFT Group, for a total enterprise value of €166 million.
The Canadian automation solutions provider has made a voluntary public tender offer for CFT of €4.60 per share in cash.
Established in 1945, CFT designs and produces turn-key machines and systems for the food and beverage sector. The Italian-headquartered company serves its global customer base through its portfolio of brands and eight facilities in Italy, Spain, Germany and Ukraine.
According to ATS, CFT is a technology leader in the fresh produce sorting, processing, and packaging niches. In 2019, the company generated revenue of €254 million with approximately 40% coming from Europe, 23% from North America and the remainder from other regions.
Following completion of the tender offer, CFT will continue to operate through its established operational facilities and headquarters that ATS intends to maintain in Italy.
“This is a highly strategic transaction that will allow us to establish a broader growth platform for ATS in the regulated food and beverage equipment market, and positions us well in attractive niches,” said Andrew Hider, CEO of ATS.
He added: “With a 75-year track record, proven technology and a dedicated workforce of 900-plus employees, CFT enables us to capture more of the value chain in a vertical we covet for its stability and growth, and complements our recent Marco acquisition.”
Roberto Catelli, representative of the major shareholders of CFT, said: “As an industry leader in automation with a long track record of innovating for customers, ATS is ideally suited to take CFT to the next level in our markets.
“The major shareholders are very pleased to support this transaction as it will create both opportunity and value for CFT, our customers and employees in the years ahead.”
Subject to regulatory authorities, the transaction is estimated to close in the first quarter of 2021.
© FoodBev Media Ltd 2020
World Dairy Innovation Awards – OPEN FOR EARLY BIRD ENTRIES!
The awards celebrate excellence and innovation across the global dairy industry.
Don’t miss out on having your innovations recognised on a global scale.
Early bird deadline 19 March – enter now!