JBT Corporation Acquires Urtasun Tecnología Alimentaria S.L.

Rhea-AI Summary

JBT Corporation (NYSE: JBT) has acquired Urtasun Tecnología Alimentaria S.L. for approximately $40 million. This acquisition enhances JBT's offerings in fruit and vegetable processing, particularly in fresh packaged and frozen markets. Urtasun anticipates a revenue of $25 million for 2021, with adjusted EBITDA margins in the mid to high teens. The deal is projected to be dilutive to GAAP earnings per share by four cents in 2021 but accretive by three cents in 2022. JBT aims to leverage its global footprint for accelerated growth through this integration.

Positive

• Acquisition expands JBT's product offerings in fruit and vegetable processing.
• Urtasun expected to contribute $25 million in revenue for 2021.
• Integration is projected to enhance earnings per share by three cents in 2022.

Negative

• Acquisition expected to dilute 2021 GAAP earnings per share by four cents.

CHICAGO, Nov. 2, 2021 /PRNewswire/ -- JBT Corporation (NYSE: JBT), a global technology solutions provider to high-value segments of the food and beverage industry, announced today it has acquired Urtasun Tecnología Alimentaria S.L., a provider of fruit and vegetable processing solutions. The company is headquartered in Navarra, Spain.    

"The acquisition of Urtasun expands our product offering in fruit and vegetable processing, particularly in the fresh packaged and frozen markets," said Brian Deck, President and Chief Executive Officer. "By integrating Urtasun into FoodTech, we can leverage JBT's global sales and service footprint to accelerate growth."

The purchase price was approximately $40 million. Urtasun expects 2021 revenue of approximately $25 million with Adjusted EBITDA margins in the mid to high-teens. The transaction is expected to be approximately four cents dilutive to 2021 GAAP earnings per share and one cent dilutive on an adjusted basis which excludes transaction-related costs and purchase price accounting. In 2022, Urtasun is expected to be accretive to GAAP and adjusted earnings per share by approximately three cents.

JBT Corporation (NYSE: JBT) is a leading global technology solutions provider to high-value segments of the food & beverage industry with focus on proteins, liquid foods and automated system solutions. JBT designs, produces and services sophisticated products and systems for multi-national and regional customers through its FoodTech segment. JBT also sells critical equipment and services to domestic and international air transportation customers through its AeroTech segment. JBT Corporation employs approximately 6,400 people worldwide and operates sales, service, manufacturing and sourcing operations in more than 25 countries. For more information, please visit www.jbtc.com.

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT's ability to control. Forward-looking statements include, among others, statements relating to the expected impact of the COVID-19 pandemic on our business and our results of operations, our plans to mitigate the impact of the pandemic, our strategic plans, our restructuring plans and expected cost savings from those plans, our liquidity and our covenant compliance. The factors that could cause our actual results to differ materially from expectations include but are not limited to the following factors:  the duration of the COVID-19 pandemic and the effects of the pandemic on our ability to operate our business and facilities, on our customers, on our supply chains due to extended delivery times and unavailability of required components and freight, on our cost of labor due to higher labor turnover and shortage of skilled labor and on the economy generally; fluctuations in our financial results; unanticipated delays or acceleration in our sales cycles; deterioration of economic conditions; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; changes to trade regulation, quotas, duties or tariffs; risks associated with acquisitions; effects of the U.K.'s exit from the E.U.; fluctuations in currency exchange rates; difficulty in implementing our business strategies; increases in energy or raw material prices, freight costs, and lack of availability of raw materials driven by supply chain delays, the unavailability of required components, and inflationary pressures; changes in food consumption patterns; impacts of pandemic illnesses, food borne illnesses and diseases to various agricultural products; weather conditions and natural disasters; impact of climate change and environmental protection initiatives; our ability to comply with the laws and regulations governing our U.S. government contracts; acts of terrorism or war; termination or loss of major customer contracts and risks associated with fixed-price contracts, particularly during periods of high inflation; customer sourcing initiatives; competition and innovation in our industries; our ability to develop and introduce new or enhanced products and services and keep pace with technological developments; difficulty in developing, preserving and protecting our intellectual property or defending claims of infringement; catastrophic loss at any of our facilities and business continuity of our information systems; cyber-security risks such as network intrusion or ransomware schemes; loss of key management and other personnel; potential liability arising out of the installation or use of our systems; our ability to comply with U.S. and international laws governing our operations and industries; increases in tax liabilities; work stoppages; fluctuations in interest rates and returns on pension assets; availability of and access to financial and other resources; and other factors described under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Report on Form 10-K  filed by JBT with the Securities and Exchange Commission and in any subsequently filed Form 10-Q.  In addition, many of our risks and uncertainties are currently amplified by and will continue to be amplified by the COVID-19 pandemic. Given the highly fluid nature of the COVID-19 pandemic, it is not possible to predict all such risks and uncertainties. JBT cautions shareholders and prospective investors that actual results may differ materially from those indicated by the forward-looking statements. JBT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, subsequent events or changes in circumstances or otherwise.

Investors & Media: Media: Kedric Meredith  +1 312 861 6034

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SOURCE JBT Corporation

FAQ

What is the purpose of JBT's acquisition of Urtasun?

The acquisition aims to expand JBT's product offerings in fruit and vegetable processing.

What is the financial impact of the Urtasun acquisition on JBT?

The acquisition is expected to dilute 2021 GAAP earnings per share by four cents but will be accretive by three cents in 2022.

How much did JBT pay for Urtasun?

JBT acquired Urtasun for approximately $40 million.

What revenue is Urtasun expected to generate in 2021?

Urtasun is expected to generate approximately $25 million in revenue for 2021.

How will the acquisition affect JBT's growth strategy?

JBT plans to leverage its global sales and service footprint to accelerate growth through the integration of Urtasun.