Multinational processing company Marel has completed its acquisition of US processing solutions company Wenger.
The deal, announced in April, values Wenger at US$540m (£433m). It has now been approved by shareholders and has passed US anti-trust tests.
Wenger produces equipment for processing pet food, vegetable protein and aquatic food. It will be a new business segment for the Marel Group and a fourth pillar of Marel’s business model in addition to poultry, meat and fish.
Marel said the acquisition should improve margins and earnings, pro forma the Wenger business represents about 10% of Marel’s total revenue and 12% of combined EBITDA.
With more than 500 employees located near Marel in Kansas in the US, Valinhos in Brazil and Kolding in Denmark, Wenger’s revenue in 2022 is expected to be US$190m (£152m), l EBITDA of US$32-35m (£26m-£28m), and its EBIT margin has been between 14-15% in recent years.
Marel is a leading global supplier of advanced food processing equipment, systems, software and services to the poultry, meat and fish industries. It was listed on NASDAQ Iceland in 1992 and double listed on Euronext Amsterdam in June 2019.
The group employs more than 7,500 people and had revenue of €1.4bn (£1.19bn) in 2021.