Chicago-based food-industry technology solutions provider, John Bean Technologies (JBT), has announced plans to increase its buyout offer for Icelandic food processing company, Marel. The deal is estimated to be worth approximately 3.5 billion euros ($3.81 billion).
JBT will now offer EUR3.60 a share for Marel, an increase from its previous bid of EUR3.40 a share made last month. The December offer represented an 8% increase from its initial bid in November.
The revised offer values Marel shares at EUR2.7 billion, resulting in an enterprise value of approximately EUR3.5 billion.
JBT’s Chief Executive, Brian Deck, is optimistic about the potential synergies that the combined company will bring, stating that the enhanced global operating scale is expected to generate significant cost synergies, as well as additional synergies from revenue, driving value creation.
Within three years, the deal is projected to generate annual run-rate cost synergies of more than $125 million.
To facilitate the transaction, JBT will offer a mix of cash and stock. Marel shareholders are expected to receive EUR950 million in cash and hold approximately a 38% stake in the combined company.
The proposed name for the combined entity is JBT Marel Corporation.
Eyrir Invest, Marel’s largest shareholder with a 24.7% stake, has already committed to accepting the offer.
