JBT Corporation acquires tray sealing specialist Proseal in US$287m deal
Proseal was recognized as one of the UK’s top 200 fastest growing companies for international sales
01 May 2019 --- Provider of tray sealing technology Proseal has been acquired by JBT Corporation, a technology solutions provider to high-value segments of the food & beverage industry, for £220 million (US$287 million). With this move, JBT hopes to significantly expand its capabilities in providing full-line customer solutions, especially for the rapidly expanding market for convenience foods.
The acquisition of Proseal is expected to add annual revenue of approximately US$100 million with EBITDA margins of approximately 25 percent before acquisition-related costs. Closing is expected in the second quarter of 2019 and is subject to regulatory approvals.
With operations in the US and Australia and a network of 14 global distributors, Proseal, who manufactures automatic tray sealing machines, conveyor systems and sealing tools, has averaged a 45 percent growth over the last two years. International sales reached £33.7 million (US$44 million) in 2018.
“The acquisition of Proseal represents an important expansion of JBT’s capabilities, adding significantly to our end-of-line market position and advancing our strategy of providing full-line customer solutions,” says Tom Giacomini, Chairman, President and CEO of JBT. “Moreover, we believe Proseal's technology affords growth opportunities around the globe.”
Tray sealing is a packaging technology used across a broad spectrum of food products, including ready meals, fresh produce, sandwiches and proteins. The solution aims to enhance freshness and flavor by sealing the product with film over a preformed tray. Proseal has been at the leading edge of 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,” says Carlos Fernandez, Executive Vice President and President, Liquid Foods at JBT.
Earlier this year, Proseal was recognized as one of the UK’s top 200 fastest growing companies for international sales. The company has been featured in the 10th annual Sunday Times International Track 200 league table – which ranks Britain’s mid-market private companies according to their international sales growth over the last two years.
