John Bean Technologies Corporation JBT announced that it received all remaining regulatory clearances necessary to proceed with its agreement to acquire Marel hf.
The transaction is now expected to close by Jan. 3, 2025.
JBT-Marel Combination Likely Set for January 2025
John Bean secured a formal confirmation from the Australian Competition and the Consumer Commission for the transaction on Nov. 22, 2024. The European Commission cleared the proposed transaction at the end of its Phase 1 review on Tuesday.
Unless the offer period is extended, JBT’s voluntary takeover offer will expire on Dec. 20, 2024.
If John Bean gains acceptance from at least 90% of Marel shareholders, JBT will pay the offer consideration to Marel shareholders within 5 Icelandic business days after the offer expires. The company, thus, expects the transaction to close no later than Jan. 3, 2025.
Details on John Bean-Marel Deal
Headquartered in Iceland, Marel is an international food processing company. It manufactures equipment and provides other services to the poultry, meat and fish industries. John Bean made the first offer to Marel at €3.15 per share in November 2023, which was subsequently increased to €3.40 per share in December 2023.
On June 24, 2024, JBT formally announced a voluntary takeover offer to purchase all issued and existing Marel shares. The transaction led to an overall consideration mix of 65% stock and 35% cash. Marel stockholders will receive €950 million in cash and own approximately 38% of the combined company. The combined company is expected to be named JBT Marel Corporation.
Benefits of JBT’s Combination With Marel
The proposed merger will unite the two renowned companies with complementary product portfolios, well-known brands and advanced technology. The combined company is expected to become a leading and diversified global food and beverage technology solutions provider.
Within three years of the completion of the transaction, the anticipated cost synergies are expected to exceed $125 million, driven by efficiencies in procurement, manufacturing, and general and administrative functions.
JBT Marel is also expected to realize additional revenue synergies of more than $75 million, given attractive cross-selling, go-to-market effectiveness, scaled innovation and enhanced global customer care capabilities. The deal is further anticipated to be accretive to earnings per share within the first full year of closing.
John Bean’s Stock Price Performance
JBT shares have gained 21% in the past year compared with the industry’s 59.5% growth.
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JBT’s Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Graham Corporation GHM, Federal Signal Corporation FSS and RBC Bearings Incorporated RBC. GHM sports Zacks Rank #1 (Strong Buy), and FSS and RBC have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Graham has an average trailing four-quarter earnings surprise of 101.85%. The Zacks Consensus Estimate for GHM’s 2024 earnings is pinned at $1.03 per share, which indicates year-over-year growth of 145.2%. The company’s shares have gained 136.8% in a year.
Federal Signal has an average trailing four-quarter earnings surprise of 11.8%. The Zacks Consensus Estimate for FSS’ 2024 earnings is pinned at $3.34 per share, which indicates year-over-year growth of 29.5%. The company’s shares have gained 40% in a year.
The Zacks Consensus Estimate for RBC Bearings’ fiscal 2025 earnings is pegged at $9.80 per share. The company has a trailing four-quarter average earnings surprise of 2.5%. RBC shares have gained 37.5% in a year.
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