Food processing equipment manufacturer Marel has agreed to purchase Treif Maschinenbau, a German food cutting technology provider, for a total of €128 million in cash and 2.9 million of its own shares.
Founded in 1948, Treif is a family-owned business that offers services for the portioning, dicing and slicing of food, with a particular focus on cutting solutions for the meat industry. Its customer base ranges from specialist retailers to international food processors.
The Oberlahr-headquartered company has reported annual revenues of over €80 million, with 500 employees in facilities in Europe, US, and China.
Due to their complementary product portfolios and geographic presence, Marel says the deal will create a strong platform to enhance further growth.
Based in Iceland, Marel is a manufacturer of food processing equipment, systems, software and services to the poultry, meat and fish industries, with a team of more than 6,300 employees in over 30 countries.
Following the acquisition, Treif will enhance Marel’s full-line product offering for the meat industry, as well as its other segments focused on improving automation, food safety and flexibility for consumer-ready product offerings.
“Together, we are better positioned to meet customer needs in terms of automation, flexibility and time to market for consumer-ready products,” said Árni Oddur Thordarson, CEO of Marel.
He added: “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.”
The acquisition is in line with Marel’s 2017-2026 growth strategy and supports its growth target of reaching €3 billion in revenues by 2026.
Uwe Reifenhäuser, CEO of Treif, added: “Looking further ahead, the dynamic global food market is evolving towards more complex and digitalised solutions, and our long-standing customers worldwide need qualified local service teams on all continents to keep their operations running at optimal performance.
“Marel has invested significantly in its global reach and digital platforms, making them an excellent partner in this regard. Our dedicated employees will get the opportunity to join a large international organisation that is also the global industry leader in our field.”
The acquisition, which is subject to customary closing conditions, is expected to close later this year.
© FoodBev Media Ltd 2019