CHICAGO – JBT Corporation, a leading supplier of food safety technologies for the food and beverage industry, signed a definitive agreement to acquire Bridgewater, NJ-based Prevenio, a leading provider of food safety solutions primarily for the poultry industry, for $170 million. JBT expects to close the transaction early in the third quarter.
Prevenio, formerly known as CMS Technologies, also operates a full-service lab in Bogart, Ga., specializing in microbiology focused on both field and R&D testing. The company manufactures OxypHresh peracetic acid; CMS Clear, a microbial solution that is used as a processing aid and BasicpHresh, a processing aid that reduces odor, enhances Campylobacter reduction and improves texture and poultry quality.
JBT said the acquisition will enhance the company’s recurring revenue portfolio while building on investments in solutions that support its customers.
“JBT’s investment in Prevenio furthers our support in the protection of our customers’ brands and reputation by focusing on the prevention of foodborne illness,” said Brian Deck, president and chief executive officer of JBT. “Prevenio’s solutions ensure anti-microbial dosing precision and effectiveness with automated process controls, allowing it to provide a tailored approach to protect food and flavor profile. Prevenio further broadens JBT’s non-equipment offering while helping customers protect against pathogen threats in their daily plant operations.”
Prevenio expects run rate annual revenue at the end of 2021 of approximately $50 million with EBITDA margins accretive to JBT FoodTech’s adjusted EBITDA margins. Including transaction-related costs and after-purchase price accounting associated with the acquisition, the transaction is expected to have a minimal impact to GAAP earnings per share, and be accretive to adjusted earnings per share (EPS) by approximately 3¢ in 2021. In 2022, Prevenio is expected to be accretive to GAAP and adjusted EPS by approximately 10¢.
“In addition to the food safety and integrity benefits, Prevenio provides proprietary turnkey solutions to our customers and ensures the safe and effective delivery of anti-microbials,” said Paul Sternlieb, executive vice president and president, Protein, at JBT. “We are excited with the prospect of enhancing Prevenio’s already strong growth profile by leveraging JBT’s global customer base while also supporting the development of its solutions for non-poultry applications.”