John Bean Technologies (JBT) Closes Bevcorp Buyout for $290M – Zacks Investment Research
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John Bean Technologies (JBT – Free Report) announced that it has completed the previously announced acquisition of Bevcorp, a beverage processing and packaging solutions provider for $290 million. The acquisition augments JBT’s capabilities in the carbonated beverage processing and packaging market.
Established in 1992, OH-based Bevcorp provides equipment and aftermarket support for the beverage processing and packaging market in the United States. The business provides core technology solutions in blending, handling, filling and closing to a gamut of customers, including blue chip companies.
Bevcorp’s product offerings are used in high-value segments of the beverage market, including carbonated soft drinks, seltzers, carbonated water, energy drinks and ready-to-drink alcoholic blends. It offers a combination of rebuilds, aftermarket components and services in addition to its new equipment offering, which accounts for more than 60% of its recurring revenues.
From September 2022 to December 2022, Bevcorp’s revenues are expected to be $25-$30 million, while an adjusted EBITDA margin is projected in the 23-24% band. The estimated impact of transaction costs, inventory step-up and non-recurring integration costs is expected to be around $9 million.
Bevcorp is not expected to leave a meaningful impact on John Bean Technologies’ adjusted earnings per share in 2022. In 2023, Bevcorp’s top line is expected in the range of $85-$90 million. Adjusted EBITDA margin is expected between 23.5% and 24.5%. Adjusted earnings per share contribution from Bevcorp are likely to be between 8 cents and 12 cents next year.
John Bean Technologies funded the acquisition by utilizing its existing credit facility. This is likely to temporarily increase its net leverage ratio above its target of 2.0-3.0X. JBT expects to lower the ratio below 3.0X by this year-end.
JBT has a strategic acquisition program focused on companies that add complementary products, thus enabling it to offer more comprehensive solutions to customers. In 2021, John Bean Technologies bought AutoCoding Systems to strengthen its abilities in the growing global market for in-line coding and inspection solutions. It also wrapped up the buyout of Prevenio, expanding its recurring revenue stream and strengthening its ability to address the food safety needs of customers. JBT closed the buyout of Urtasun in the fourth quarter of 2021, which extended its product offering in fruit and vegetable processing.
Earlier this year, John Bean Technologies acquired Alco-food-machines GmbH & Co. KG (Alco), a leading provider of food processing solutions and production lines. The takeover expands JBT’s offering in convenience meal lines, and alternative and plant-based protein technology. JBT expects this deal to be approximately two cents accretive to its adjusted earnings per share in the current year.
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Shares of John Bean Technologies have declined 10.6% in the past six months compared with the industry’s plunge of 24.4%.
John Bean Technologies currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT – Free Report) , Greif, Inc. (GEF – Free Report) and Valmont Industries, Inc. (VMI – Free Report) . While AIT sports a Zacks Rank #1 (Strong Buy), GEF and VMI carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have increased 5.8% for fiscal 2023 (ending June 2023) in the past 60 days.
Applied Industrial pulled off a trailing four-quarter earnings surprise of 22.8%, on average. AIT’s shares have gained 3% in the past six months.
Greif presently has a Zacks Rank of 2. GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average.
GEF’s earnings estimates have increased 0.4% for fiscal 2022 (ending October 2022) in the past 60 days. Its shares have risen 11.6% in the past six months.
Valmont presently has a Zacks Rank of 2. VMI’s earnings surprise in the last four quarters was 13.7%, on average.
In the past 60 days, Valmont’s earnings estimates have increased 3.8% for 2022. The stock has rallied 25.3% in the past six months.
Valmont Industries, Inc. (VMI) – free report >>
Applied Industrial Technologies, Inc. (AIT) – free report >>
Greif, Inc. (GEF) – free report >>
John Bean Technologies Corporation (JBT) – free report >>
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