CHICAGO, Sept. 2, 2015 /PRNewswire/ -- JBT
Corporation (NYSE: JBT), a global technology solutions
provider to the food processing and air transportation industries,
announced today the signing of a definitive agreement to acquire
the shares of A&B Process Systems ("A&B"), a leading
provider of processing systems for the beverage and food
industries. The purchase price will be $102 million, before customary post-closing
adjustments. The transaction is expected to close in the
fourth quarter of 2015.
A&B, located in Stratford,
Wisconsin, specializes in the design, manufacturing,
automation and installation of liquid foods turnkey production
systems. The addition of A&B's processing capabilities and
technologies, along with JBT's ("the Company") recently completed
acquisition of Stork Food & Dairy Systems, greatly strengthens
JBT's liquid foods portfolio and its ability to provide complete
solutions to customers. A&B also brings a large field service
operation that will strengthen JBT's installation and aftermarket
business. At the same time, JBT will leverage its global sales
network to expand the geographic reach of A&B's portfolio,
which is currently limited to the United
States and Canada.
Tom Giacomini, JBT's Chairman,
President and Chief Executive Officer, noted, "We are very pleased
to welcome A&B to the JBT team, bringing with it a rich history
of serving the food processing industry for more than 40
years. 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."
JBT expects transaction costs and purchase price accounting
associated with the acquisition to result in a $0.03 - $0.04 per share negative impact in the
fourth quarter of 2015. In fiscal year 2016, the Company
expects A&B to contribute sales and earnings before interest,
taxes, depreciation, and amortization (EBITDA) of approximately
$100 million and $14 million, respectively, and be accretive to
earnings by approximately $0.10 -
$0.15 per share. A&B's cash generation is expected to
exceed its net income.
In 2017, JBT expects the acquisition to contribute $0.20 - $0.25 per share and deliver double digit
cash return on invested capital (ROIC), as the Company deploys its
JBT Excellence Model (JEM) initiatives.
Additional information on JBT's Next Level strategy and
acquisition platform can be found at the Investor Relations link on
the Company website at http://ir.jbtcorporation.com.
JBT Corporation (NYSE: JBT) is a leading global technology
solutions provider to the food processing and air transportation
industries. JBT Corporation designs, manufactures, tests and
services technologically sophisticated systems and products for
regional and multi-national industrial food processing customers
through its JBT FoodTech segment and for domestic and international
air transportation customers through its JBT AeroTech
segment. JBT Corporation employs approximately 3,700 people
worldwide and operates sales, service, manufacturing and sourcing
operations located in over 25 countries. For more information,
please visit www.jbtcorporation.com.
This release contains forward-looking statements as defined
in the Private Securities Litigation Reform Act of
1995. Forward-looking statements are information of a
non-historical nature and are subject to risks and uncertainties
that are beyond the Company's ability to control. These risks
and uncertainties are described under the caption "Risk Factors" in
the Company's 2014 Annual Report on Form 10-K filed by the Company
with the Securities and Exchange Commission that may be accessed on
the Company's website. The Company cautions shareholders and
prospective investors that actual results may differ materially
from those indicated by the forward-looking statements.
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SOURCE JBT Corporation