Munters to Strengthen Digital Focus with Strategic Divestment
Munters Divests FoodTech Equipment Offering
Munters has recently signed a significant agreement to divest its FoodTech Equipment division to Grain & Protein Technologies (GPT), a subsidiary owned by American Industrial Partners (AIP), for about MEUR 97.5, which translates to approximately BSEK 1.1 on a cash and debt-free basis.
Strategic Alignment with Long-term Goals
This divestment aligns with Munters' strategic focus on creating long-term value by emphasizing specific segments within each business area. With the growing importance of digital solutions, Munters aims to sharpen its focus on advancing sectors such as software, controls, sensors, and IoT, marking a new direction for its FoodTech business.
Comments from Leadership
Klas Forsström, President and CEO of Munters, expressed the significance of this transaction, stating, "Selling the Equipment business is a pivotal step towards concentrating on our digital solutions in the FoodTech sector. This business has a rich heritage in engineering, with dedicated leadership and staff. I firmly believe GPT will be an excellent steward for this segment as it progresses in its journey."
Details of the Divestment
The divestment entails the transfer of five production facilities located around the globe, alongside an assembly hub and three sales offices. Approximately 400 employees working across various regions—including Europe, North America, and Southeast Asia—are part of this transaction. These facilities are known for their production of ventilation equipment tailored for livestock farming and greenhouse operations.
Financial Impact and Future Directions
The FoodTech Equipment range includes essential products like ventilation and cooling systems and CELdek (evaporative cooling pads). This segment has consistently generated strong financial results, displaying annual net sales of MSEK 1,925 with an anticipated adjusted EBITA of MSEK 226 for 2024.
It is important to note that the production and sale of the CELdek product line in the Americas are excluded from this deal and will instead be incorporated into the AirTech business area, projecting an additional annual sales contribution of approximately MSEK 200 for the AirTech Americas region based on 2024 forecasts.
Transition and Reporting Changes
Beginning in the first quarter of 2025, the FoodTech Equipment offering will be reclassified and reported as discontinued operations. The impact of the divestment on Munters’ finances will involve a capital loss estimated at approximately BSEK 0.5. The completion of this transaction is expected within the first half of 2025, pending regulatory approvals and other customary closing requirements.
About GPT and AIP
Grain & Protein Technologies, under AIP's ownership, specializes in the design, manufacture, and marketing of grain and seed storage equipment, alongside systems for feeding, ventilation, and control critical to protein production, particularly in poultry and swine sectors. With a prominent position in both North and South America, GPT markets its agricultural equipment through a network of over 1,000 independent dealers.
About Munters Group
Munters is recognized as a global leader in energy-efficient air treatment and climate solutions. Established in 1955, the company strives to create optimal conditions for its customers across various industries. Currently, approximately 5,400 employees are engaged in manufacturing and sales operations across more than 30 countries, with Munters Group AB reporting annual net sales exceeding SEK 15 billion in 2024.
Frequently Asked Questions
What is the significance of Munters' divestment?
The divestment is aimed at sharpening Munters' focus on digital solutions within the FoodTech sector, aligning with its broader strategy for long-term value creation.
Who is acquiring Munters' FoodTech Equipment division?
The FoodTech Equipment division is being acquired by Grain & Protein Technologies, owned by American Industrial Partners.
What impact will this divestment have on Munters' finances?
This divestment is expected to result in a capital loss of approximately BSEK 0.5 for Munters, reflecting its impact on financial reporting.
When is the transaction expected to close?
The transaction is anticipated to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.
What does GPT specialize in?
GPT designs and manufactures grain and seed storage equipment, along with systems for feeding and ventilation critical for protein production in agriculture.
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