Founded in 1992, Bevcorp is a beverage processing and packaging solutions provider with expertise in blending, handling, filling, and closing technologies
US-based equipment maker JBT has signed a definitive agreement to acquire Bevcorp, a beverage processing and packaging solutions provider, for $290m.
Established in 1992 and based in Eastlake, Ohio, Bevcorp serves a variety of clients through its blending, handling, filling, and closing technologies.
It offers services to 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.
Bevcorp offers a mix of rebuilds, aftermarket components, and services in addition to its new equipment offering, which accounts for more than 60% of its recurring revenue.
JBT projects that the company will generate $85m in sales and $20m in EBITDA in 2022.
The deal will be viewed as the acquisition of assets, resulting in a significant tax step-up advantage with a net present value of almost $35m. The transaction will be financed under JBT’s existing credit facility.
It is anticipated to conclude in the third quarter of 2022, subject to regulatory approval and typical closing conditions.
JBT has reported a net income of $33.4m, or $1.04 per diluted share, for the second quarter ended 30 June 2022, compared to $30.5m, or $0.95 per diluted share, for the same period of the previous year.
The company has reported revenue of $542.3m for the second quarter of 2022, compared to $475.5m for the same quarter of 2021.
It has reported an operating income of $42.2m for the second quarter of 2022, compared to $47.3m for the corresponding period the last year
JBT executive vice president and chief financial officer Matt Meister said: “We made progress in the second quarter of 2022 with sequential gains in revenue, margins, and earnings.
“As we expected, inflation and supply chain impacts continued, while foreign exchange headwinds weighed more heavily on our results.
“Overall, orders remained at healthy levels and total backlog was at $1.1 billion, which is supportive of our double-digit revenue growth forecast for the full year 2022.”