US – US-based equipment maker JBT has signed a definitive agreement to acquire Bevcorp, a beverage processing and packaging solutions provider, for US$290 million.
Founded in 1992 Bevcorp serves a variety of clients through its blending, handling, filling, and closing technologies.
The company offers services to customers in high-value segments of the beverage market, including carbonated soft drinks, seltzers, carbonated water, energy drinks, and ready-to-drink alcoholic beverage blends.
In addition, Bevcorp offers a mix of rebuilds, aftermarket components, and services in addition to its new equipment offering, which accounts for more than 60% of its recurring revenue.
JBT projects that the company will generate US$85 million in sales and US$20 million in EBITDA in 2022.
The deal will be viewed as the acquisition of assets, resulting in a significant tax step-up advantage with a net present value of almost US$35 million. The transaction will be financed under JBT’s existing credit facility.
Based on 2022 forecasts, the purchase price represents approximately 14.5x EBITDA and 12.7x EBITDA considering the tax benefit.
The acquisition will be funded under JBT’s existing credit facility. JBT expects its pro forma net leverage ratio will be less than 3.0x by year-end 2022.
The transaction is subject to regulatory approval and customary closing conditions and is expected to close in the third quarter of 2022.
JBT Corporation reports second quarter 2022
JBT has reported a net income of US$33.4 million, or US$1.04 per diluted share, for the second quarter ended 30 June 2022, compared to US$30.5 million, or US$0.95 per diluted share, for the same period of the previous year.
The company has reported revenue of US$542.3 million for the second quarter of 2022, compared to US$475.5 million for the same quarter of 2021.
It has also reported an operating income of US$42.2 million for the second quarter of 2022, compared to US$47.3 million for the corresponding period the last year
JBT Executive Vice President and Chief Financial Officer Matt Meister said: “We made progress in the second quarter of 2022 with sequential gains in revenue, margins, and earnings.
“As we expected, inflation and supply chain impacts continued, while foreign exchange headwinds weighed more heavily on our results.
“Overall, orders remained at healthy levels and total backlog was at US$1.1 billion, which is supportive of our double-digit revenue growth forecast for the full year 2022.”
For the third quarter of 2022, JBT expects year-over-year consolidated revenue growth of 16.0 – 17.5 percent.
At FoodTech, organic revenue growth is forecast to be 12.0 – 13.5 percent with acquisitions adding 5 – 6 percent and a foreign exchange headwind of 5 – 6 percent. At AeroTech, revenue growth is expected to be 26 – 28 percent.
The Company anticipates the third quarter of 2022 FoodTech operating margin to be 13.0 – 13.75 percent with an adjusted EBITDA margin of 17.75 – 18.5 percent.
AeroTech operating margin is projected to be 8.25 – 9.0 percent with an adjusted EBITDA margin of 9.0 – 9.75 percent.
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