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JBT to acquire A&B Process Systems for $102m

Published 04 September 2015

Food processing equipment provider JBT has signed a definitive agreement to acquire Wisconsin-based food solutions provider A&B Process Systems for $102m.

Headquartered in Stratford, Wisconsin, A&B specialises in the design, manufacturing, automation and installation of liquid foods turnkey production systems.

The acquisition will strengthen JBT's liquid foods portfolio and expand its offerings to customers.

JBT chairman, president and CEO Tom Giacomini said: "This transaction - like the four companies we acquired over the past year and a half - supports our next level strategy of acquiring leading companies that strengthen our protein processing and liquid foods portfolios.

"While we have significantly exceeded our next level 2017 acquisition growth target, we will maintain our disciplined pursuit of strategic opportunities."

A&B's field service operation will strengthen JBT's installation and aftermarket business. JBT plans to use its global sales network to extend the geographic reach of A&B's portfolio.

The transaction is likely to be completed during this fourth quarter, and have a $0.03 - $0.04 per share negative impact to JBT.

In 2016, JBT expects A&B to contribute $100m and $14m in sales and earnings before interest, taxes, depreciation, and amortization (EBITDA), respectively.

JBT has recently acquired filling and sterilization solutions provider Stork Food & Dairy Systems for €47m.