JBT Corporation has signed a definitive agreement to acquire Bevcorp, a leading provider of beverage processing and packaging solutions, for $290 million.
Bevcorp was founded in 1992 and is headquartered in Eastlake, Ohio. The business' solutions in blending, handling, filling, and closing technologies serve a range of 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.
Along with its strong new equipment offering, Bevcorp has a resilient mix of rebuilds, aftermarket parts, and services, representing recurring revenue of more than 60 percent. JBT expects the business to achieve 2022 revenue and EBITDA of approximately $85 million and $20 million, respectively. The transaction will be treated as a purchase of assets, which provides a meaningful tax step-up benefit with a net present value of approximately $35 million. 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.
"We are executing on our Elevate 2.0 capital deployment strategy with the acquisition of Alco-food-machines and the announcement to acquire Bevcorp ," said Brian Deck, President and Chief Executive Officer. "Bevcorp will expand JBT's presence in the beverage processing and packaging market, while its strong recurring revenue profile, leading service culture, and accretive margins will enhance JBT's competitive position."
