GEA acquires Convenience Food Systems (CFS)
A new, 6th, GEA segment is created following the expansion of the product portfolio
Bochum - GEA Group Aktiengesellschaft expands the share of food process technology in its portfolio. Acquiring the company Convenience Food Systems (CFS) from funds managed by AEA Investors LP, GEA has added to its group one of the most multi-faceted suppliers of secondary food processing and packaging machinery (meat, fish, cheese). The company, which is headquartered in Bakel, NL, and has some 2000 employees expects a turnover of about EUR 400 M in this financial year. The transaction remains subject to approval by the antitrust authorities and is expected to be consummated during the first half of 2011.
„This acquisition follows our declared strategy to expand the food process technology activities of GEA Group horizontally. We are taking our portfolio another big step forward towards the less cyclical food industry. In doing so, we can leverage the brand value of GEA by offering our customers ever more solutions along their entire process chain from one single source.” declared Jürg Oleas, CEO of GEA Group.
„In the medium term, GEA sees potential to considerably boost profits at CFS in cooperation with the existing management and to realise synergies with existing GEA businesses.“ remarks Niels Graugaard, member of the executive board and COO of GEA.
„The market segment of animal proteins is one of the fastest growing within the entire food industry. As part of the GEA Group we will have the chance to develop new customers and find access to new markets. GEA offers ideal growth conditions for an innovative and quality focused company such as CFS.“ added Brian McCluskie, CEO of CFS.
The purchase price is based on an enterprise value of about EUR 435 M and will be financed with existing credit facilities. The acquisition of CFS will be accretive to cash flow and EPS of GEA Group and suits the group target of a mid-term EBIT-margin of 12%.
GEA Group AG
GEA Group Aktiengesellschaft is one of the largest system providers for food and energy processes with about EUR 4.4 billion in 2009 revenue. As an internationally operating technology group, the company focuses on process technology and components for demanding production processes in various end markets. The group gains about 70 percent of its revenue in the long-term growing food and energy industries. The company’s workforce comprised over 20,000 employees worldwide as of September 30, 2010. GEA Group is a market and technology leader in its business areas. The company is listed in the MDAX index (G1A, WKN 660 200).
AEA Investors LP
AEA was founded in 1968 by S.G. Warburg & Co. and the Rockefeller, Mellon, and Harriman family interests as a private investment vehicle for a select group of family offices. Today, its investors include a global group of individuals, family groups and institutions and it focuses its investments on four industry sectors: value-added industrial products, specialty chemicals, consumer products and services. AEA has offices in London, Munich, New York, Hong Kong and Shanghai.
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