JBT has signed a definitive agreement to buy Proseal UK Limited, a company specializing in producing tray sealing technology for the food industry. Proseal is headquartered in Adlington, the UK with additional production facilities in Richmond, Virginia and Melbourne, Australia.
The acquisition of Proseal is expected to add annual revenue of approximately USD100m with EBITDA margins of approximately 25% before acquisition-related cost. The purchase price is GBP220, before customary post-closing adjustments. Closing is expected in the second quarter of 2019, as the deal is subject to regulatory approvals.
“The acquisition of Proseal represents an important expansion of JBT’s capabilities, adding significantly to our end-of0line market position and advancing our strategy or providing full-line customer solutions. Moreover, we believe Proseal’s technology affords growth opportunities around the globe,” said Tom Giacomini, JBT’s chairman, president, and chief executive officer.
Tray sealing is a packaging technology broadly used in the food industry including for ready meals, fresh produce, sandwiches, and proteins. The technique is known to enhance freshness and flavor by sealing the product with film over a performed tray. According to the press release, Proseal has been a key player in this industry, developing environmentally-friendly packaging that minimizes the use of plastics while reducing food waste by extending the product’s shelf-life.
“Tray sealing is relevant to many of our FoodTech customers, particularly in the rapidly expanding market for convenience foods,” explained Carlos Fernandez, JBT’s executive vice president and president, Liquid Foods.