JBT Corporation, a global technology solutions provider to high-value segments of the food & beverage industry, announced on June 3 that it has completed two acquisitions. First, the previously announced acquisition of Proseal uk Limited, a leading provider of tray sealing technology has been completed. Additionally, the Company has completed the acquisition of Prime Equipment Group, Inc., a manufacturer of turnkey primary and water re-use solutions to the poultry industry based in Columbus, Ohio.
"The acquisition of Prime advances our goal of becoming the preferred provider of full-line solutions for poultry customers with the addition of Prime's primary processing capabilities," stated Tom Giacomini, JBT's Chairman, President, and Chief Executive Officer. "Prime's deep expertise, reputation, and high-quality products and services complement our strategy and winning culture at JBT."
"Prime's latest technologies address pressing needs in the poultry industry in the areas of automation and water re-use which will further strengthen our customer relationships," said Paul Sternlieb, JBT's Executive Vice President and President, Protein. "Prime's annual revenue of approximately $45 million is primarily concentrated in the U.S., and we look forward to leveraging JBT's global reach to accelerate the deployment of the automation and water technology for growth outside the U.S."
The purchase price for Prime is $65 million and $280 million for Proseal. Both agreements include customary post-closing adjustments.
Together, in 2019, the acquisitions are expected to add revenue of $80 - 85 million, to be dilutive to earnings per share by ($0.15) – ($0.25), and accretive to adjusted earnings per share by $0.05 – $0.10, all relative to prior guidance. For the second quarter of 2019, we expect earnings per share will be diluted by approximately ($0.10), while adjusted earnings per share will be diluted by ($0.01) – ($0.02). In 2020, the acquisitions are expected to collectively contribute $140 - 150 million in revenue, and to be accretive to earnings per share by $0.10 – $0.15, and accretive to adjusted earnings per share by $0.20 – $0.25. Adjusted earnings per share excludes the dilutive impact of transaction costs, inventory step up, and integration costs.