CHICAGO - JBT Corporation (NYSE: JBT), a global technology solutions provider to the food and beverage industry with a market capitalization of $3.94 billion, has successfully completed its voluntary takeover offer for Marel hf. ( ICL (TASE:ICL): Marel), with the offer expiring today. According to InvestingPro data, JBT enters this merger from a position of financial strength, with a "GOOD" overall health score and impressive six-month returns of 24.42%. JBT announced that it has met all conditions for the acquisition, including the minimum acceptance condition, with at least 90% of Marel's issued and outstanding shares tendered.
The final results of the tender offer, including the exact number of shares tendered, will be disclosed in an upcoming 8-K filing by JBT. The company plans to finalize the acquisition according to the offer's terms, having satisfied the necessary conditions. JBT's strong financial position is evidenced by its healthy current ratio of 2.55, indicating robust liquidity to support this strategic move. For deeper insights into JBT's financial metrics and valuation analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
Brian Deck, President and CEO of JBT, stated, "Today marks the final major milestone in combining JBT and Marel to form a leading food and beverage process company. We are pleased with the outcome of the Marel shareholders' tender decisions and extend our appreciation to shareholders for supporting the transaction."
The settlement of the transaction is set for January 2, 2025. Marel shareholders who tendered their shares had the option to receive payment in cash, JBT common stock, or a combination of both, subject to proration. JBT aims to acquire any remaining Marel shares not yet tendered and will seek to delist Marel shares from Nasdaq Iceland and Euronext (EPA:ENX) Amsterdam as soon as possible under applicable laws.
Upon completion of the merger, JBT will change its corporate name and stock ticker symbol to JBT Marel Corporation and JBTM, respectively, with the change expected to occur on or about January 2, 2025. The shares will be listed on the New York Stock Exchange and have a secondary listing on Nasdaq Iceland, with trading expected to commence on both exchanges on January 3, 2025. This merger comes as JBT demonstrates strong operational stability, having maintained dividend payments for 17 consecutive years. InvestingPro subscribers can access additional insights, including 5+ more ProTips and detailed merger analysis through the platform's advanced research tools.
Goldman Sachs Co LLC served as JBT's financial advisor, with Kirkland & Ellis LLP and LEX providing legal counsel. Arion banki hf. acted as the lead manager for the Icelandic offer, and ABN AMRO (AS:ABNd) Bank N.V. served as the agent for the Euronext Amsterdam Exchange.
This news is based on a press release statement.
In other recent news, John Bean Technologies (NYSE:JBT) revealed robust growth in its third-quarter earnings, with a 12.4% year-over-year increase in revenue, reaching $454 million. The company's adjusted EBITDA also saw a significant rise of 23%, reaching $82 million. Furthermore, JBT's adjusted EPS increased, reaching $1.50 from $1.11 in the same quarter of the previous year. These are key developments for the company.
In addition to the earnings growth, JBT has also recently announced its merger with Marel, a move that is expected to notably contribute to future revenue streams. The acquisition is part of JBT's strategic expansion in the global food processing market and is expected to complement its existing portfolio of products and services. The merger is subject to various regulatory approvals and compliance with U.S. tender offer rules and European regulations.
Lastly, Jefferies initiated coverage on JBT with a Hold rating, citing potential near-term risks associated with growth expectations for Marel, despite the company's ability to generate about 50% of its revenue from recurring sources due to its large global installed base. This initiation of coverage is a significant development in the company's recent news.
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