Marel is pleased to announce an agreement to acquire German food cutting technology provider TREIF Maschinenbau GmbH (“TREIF”). The two companies have a great strategic and cultural fit with complementary product portfolios and geographic presence, creating a strong platform to enhance further growth.

About TREIF
TREIF, a family-owned business headquartered in Oberlahr, Germany is at the forefront in solutions and services focused on portioning, dicing, slicing and cutting of food. The company was founded in 1948, focusing on cutting solutions for the meat industry, which continues to be its largest segment. With annual revenues of over EUR 80 million, and around 13 million in EBITDA, TREIF has an impressive track record of continuous product innovation and steady growth with 500 employees in facilities in Europe, US, and China. Its long-standing customer base is diversified, ranging from specialist retailers to blue-chip international food processors. 

A shared passion for innovation and partnership with customers
TREIF is a great addition to Marel, strengthening the full-line product offering, increasing standard equipment sales and leveraging aftermarket potential with Marel’s extensive global reach and local services in all regions. Like Marel, TREIF is highly focused on innovation and cutting-edge technology, backed by an experienced and committed team and long-standing partnerships with customers. TREIF’s product portfolio in the cutting segment, portioning, dicing and slicing is highly complementary with Marel’s product portfolio. The transaction will enhance Marel’s full-line offering for the meat industry, as well as its other segments focused on improving automation, food safety and flexibility for consumer-ready product offerings. United, the two companies are in a stronger position to drive further growth, providing better value for both current and future customers.

Transaction highlights and timeline
Marel has agreed to acquire the entire share capital of TREIF Maschinenbau GmbH, including all relevant business activities of the group. The purchase price on cash and debt free basis (enterprise value) will be paid with EUR 128 million in cash and 2.9 million Marel shares. The closing of the acquisition is subject to customary closing conditions, including anti-trust approval, which is expected to take place later in the year.

The acquisition will be financed through Marel’s strong balance sheet, existing credit facilities and available treasury shares that Mr. Uwe Reifenhäuser, current owner and CEO, will hold with a lock-up period of 18 months. Pro forma leverage following completion of the acquisition is estimated to be 1.2xnet debt/EBITDA, compared to 0.6x at the end of 2Q 2020 and the targeted capital structure of 2-3x net debt/EBITDA. The acquisition is fully in line with Marel´s previously announced 2017-2026 growth strategy, of 12% average annual increase in revenues through a balanced mix of organic and acquired growth.

Árni Oddur Thordarson, CEO of Marel, commented:
“We are pleased to announce the agreement to acquire German processing equipment provider TREIF, a true hidden champion in our industry. With this transaction, two technological leaders with a shared passion for innovation and a vision to transform the way food is processed, join forces.

We have followed TREIF for years and been impressed by their cutting-edge technology, talented team and success in customer engagement, ranging from small shops to leading blue chip international food companies. Together, we are better positioned to meet customer needs in terms of automation, flexibility and time to market for consumer-ready products. TREIF’s leading cutting technology is highly complementary to Marel’s existing product portfolio. TREIF’s largest business segments today are within meat and baked goods, and we believe their technical capabilities can be cascaded to Marel’s poultry and fish segments and accelerate our innovation roadmap. TREIF’s installed base is substantial and by leveraging Marel’s digital platform and global reach with local teams in all key regions, we believe that we can drive further growth and aftermarket potential.

The acquisition of TREIF is in line with our 2017-2026 growth strategy. There are ample consolidation opportunities in our industry, and Marel has the commitment and capital structure to pursue opportunities that support our ambitious growth target of reaching EUR 3 billion in revenues by 2026.”

Uwe Reifenhäuser, CEO of TREIF, commented:
“I am confident that we have found a great home for TREIF’s legacy and secured the long-term success of our leading technology, our customers and our committed employees. My father founded TREIF more than 70 years ago with the vision to offer the best possible cutting technology in the meat segment, later expanding into dairy, baked goods and other food segments in need of precise cutting technology. Our passion has always been to deliver innovative, reliable solutions with a strong value proposition. As a result we have one of the largest food cutting product portfolio and a loyal customer base across both the retail and processing industry. 

TREIF and Marel are a good strategic fit, both from a product and geographical perspective. We have known and respected each other for a long time, and our recent discussions confirm our cultural fit and shared passion for innovation and customer satisfaction. Looking further ahead, the dynamic global food market is evolving towards more complex and digitalized solutions, and our long-standing customers worldwide need qualified local service teams on all continents to keep their operations running at optimal performance. Marel has invested significantly in its global reach and digital platforms, making them an excellent partner in this regard. Our dedicated employees will get the opportunity to join a large international organization that is also the global industry leader in our field.”

For further information, please contact:

Marel Investor Relations
Tinna Molphy
 IR@marel.com and tel. + 354 563 8001.

Marel Media Relations
Iceland: Marel, Audbjorg Olafsdottir, Audbjorg.olafsdottir@marel.com and tel. +354 853 8626.
International: FTI Consulting, Alex Le May,  marel@fticonsulting.com and tel. +4420 3727 1340.
Netherlands & Benelux: Bickerton Strategies, Ian Bickerton, Ian@bickertonstrategies.com and tel. +31 62501 8512, and David Brilleslijper, david@bickertonstrategies.com and tel + 31 610942514.  

About Marel
Marel (NASDAQ: MAREL; AEX: MAREL) is a leading global provider of advanced food processing equipment, systems, software and services to the poultry, meat and fish industries. Our united team of more than 6,300 employees in over 30 countries delivered EUR 1.3 billion in revenues in 2019. Annually, Marel invests around 6% of revenues in innovation. By continuously transforming food processing, we enable our customers to increase yield and throughput, ensure food safety and improve sustainability in food production. Marel was listed on NASDAQ Iceland in 1992 and dual-listed on Euronext Amsterdam in June 2019. For further information, please visit marel.com/IR.

About Treif
TREIF is a family owned business headquartered in Oberlahr, Germany and a leading supplier of portioning, dicing, slicing and bread cutting solutions with annual revenue of around EUR 80 million and 500 employees. TREIF has an impressive track record of continuous product innovation, a large installed base and loyal customer base. Since current owner and CEO, Uwe Reifenhäuser, took over management in 1989, TREIF has shown steady growth and opened offices in Europe, USA, and China. Its customer base is diversified ranging from specialist retailers to global food processors within red meat, dairy and baked goods. For further information, please visit www.treif.de/en.