Market news, 10 February 2025
Munters Signs Agreement to Divest FoodTech Equipment Offering
Date:
19 February 2025
Munters has entered into an agreement to sell its FoodTech Equipment offering to Grain & Protein Technologies (GPT), a company owned by American Industrial Partners (AIP). The deal is valued at approximately $105 million (MEUR 97.5) on a cash- and debt-free basis.
The divestment aligns with Munters' strategy to enhance long-term value creation by focusing on select segments within each business area. Within FoodTech, the company has been prioritizing digital growth, including software, controllers, sensors, and IoT solutions. Following this transaction, FoodTech will exclusively consist of these digital operations.
"The sale of the Equipment business offering is an important move towards our goal of enhancing our focus on FoodTech digital solutions. The equipment business has a distinguished legacy in engineering, strong leadership, and committed staff. I am certain that GPT will be a very good owner for them in the next stage of their development," says Klas Forsström, President and CEO of Munters.
The transaction includes five production facilities in Italy, Germany, China, and the United States, as well as an assembly hub in South Africa and three sales offices. Around 400 employees across Europe, North America, the Middle East, and Southeast Asia are part of this business, which specializes in ventilation equipment for livestock farming and greenhouses. The FoodTech Equipment offering comprises fans, ventilation and cooling systems, and the production of CELdek evaporative cooling pads. The business is projected to generate annual net sales of $190 million (MSEK 1,925) and an adjusted EBITA of $22 million (MSEK 226) in 2024.
However, production and sales of the CELdek product line in the Americas are excluded from the divestment. This segment will be fully integrated into the AirTech business area, contributing an estimated $20 million (MSEK 200) in annual net sales to AirTech Americas based on 2024 figures.
Starting in Q1 2025, the FoodTech Equipment offering will be classified as discontinued operations. The divestment is expected to result in a capital loss of approximately $48 million (BSEK 0.5). The transaction is anticipated to close in the first half of 2025, pending regulatory approvals and customary closing conditions.
GPT’s parent company, AIP, is a U.S.-based private equity firm specializing in industrial businesses serving both domestic and global markets.
The divestment aligns with Munters' strategy to enhance long-term value creation by focusing on select segments within each business area. Within FoodTech, the company has been prioritizing digital growth, including software, controllers, sensors, and IoT solutions. Following this transaction, FoodTech will exclusively consist of these digital operations.
"The sale of the Equipment business offering is an important move towards our goal of enhancing our focus on FoodTech digital solutions. The equipment business has a distinguished legacy in engineering, strong leadership, and committed staff. I am certain that GPT will be a very good owner for them in the next stage of their development," says Klas Forsström, President and CEO of Munters.
The transaction includes five production facilities in Italy, Germany, China, and the United States, as well as an assembly hub in South Africa and three sales offices. Around 400 employees across Europe, North America, the Middle East, and Southeast Asia are part of this business, which specializes in ventilation equipment for livestock farming and greenhouses. The FoodTech Equipment offering comprises fans, ventilation and cooling systems, and the production of CELdek evaporative cooling pads. The business is projected to generate annual net sales of $190 million (MSEK 1,925) and an adjusted EBITA of $22 million (MSEK 226) in 2024.
However, production and sales of the CELdek product line in the Americas are excluded from the divestment. This segment will be fully integrated into the AirTech business area, contributing an estimated $20 million (MSEK 200) in annual net sales to AirTech Americas based on 2024 figures.
Starting in Q1 2025, the FoodTech Equipment offering will be classified as discontinued operations. The divestment is expected to result in a capital loss of approximately $48 million (BSEK 0.5). The transaction is anticipated to close in the first half of 2025, pending regulatory approvals and customary closing conditions.
GPT’s parent company, AIP, is a U.S.-based private equity firm specializing in industrial businesses serving both domestic and global markets.
