JBT Corp. has completed its acquisitions of Proseal uk Ltd. and Columbus, Ohio-based Prime Equipment Group Inc. The purchase price for Prime, a manufacturer of turnkey primary and water re-use solutions to the poultry industry, is $65 million. Chicago-based JBT acquired Proseal, a technology provider to high-value segments of the food & beverage industry, for $280 million.
The Proseal deal was first announced in late April.
The acquisition of Prime is expected to advance JBT’s goal of becoming the preferred provider of full-line services for poultry customers with the addition of Prime's primary processing capabilities, JBT CEO Tom Giacomini said.
Prime's latest technologies also address pressing needs in the poultry industry in the areas of automation and water re-use, which will further strengthen JBT’s 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,” Sternlieb said in a statement.
Together, in 2019, the acquisitions are expected to add revenue of $80 million to 85 million for JBT, to be dilutive to earnings per share by 15 cents to 25 cents and accretive to adjusted earnings per share five to 10 cents, all relative to prior guidance.
For the second quarter of 2019, JBT expects earnings per share will be diluted by approximately 10 cents, while adjusted earnings per share will be diluted by one to two cents. In 2020, the acquisitions are expected to collectively contribute $140 million to 150 million in revenue, and to be accretive to earnings per share by 10 to 15 cents, and accretive to adjusted earnings per share by 20 to 25 cents.
Adjusted earnings per share excludes the dilutive impact of transaction costs, inventory step up, and integration costs.