UK – JBT Corporation, an American food processing machinery company has agreed to acquire UK’s leading provider of tray sealing technology, Proseal UK Limited for US$284.5 million (£220 million).
Headquartered in Adlington, UK, Proseal manufactures manual, semi-automatic, and fully-automatic tray sealing machines for the food and pharmaceutical industries.
It has additional production facilities in Richmond, Virginia and Melbourne, Australia.
The company’s production capabilities complement JBT’s expertise as a global technology solutions provider to high-value segments of the food & beverage industry.
According to JBT, the acquisition is expected to add annual revenue of approximately US$100 million with EBITDA margins of approximately 25% before acquisition-related costs.
“The acquisition of Proseal represents an important expansion of JBT’s capabilities, adding significantly to our end-of-line market position and advancing our strategy of providing full-line customer solutions,” said Tom Giacomini, JBT’s Chairman, President, and Chief Executive Officer.
“Moreover, we believe Proseal’s technology affords growth opportunities around the globe.”
Tray sealing is a packaging technology and is applied in a range of foods including ready meals, fresh produce, sandwiches, and proteins with ability to enhance freshness and flavor.
The technology is also an alternative in developing environmentally-friendly packaging that minimizes the use of plastics while reducing food waste by extending the product’s shelf life.
“Tray sealing is relevant to many of our FoodTech customers, particularly in the rapidly expanding market for convenience foods,” said Carlos Fernandez, JBT’s Executive Vice President and President, Liquid Foods.
The deal is expected to close in the second quarter of 2019, subject to regulatory and customary requirements.
JBT was incorporated in 2008 and last July, it acquired Dutch food equipment and solutions provider FTNON for €32 million (US$35.77 million) to expand in the fruit and vegetable market.