The world’s largest poultry processing machinery manufacturing company has been sold, said its private equity owner, after more than doubling its size and profits in just seven years.
Altor Equity Partners AB told FoodProductionDaily.com that it had reached an agreement Friday to sell Netherlands-based Meyn to CTB Inc, a subsidiary of Berkshire Hathaway, for an undisclosed sum.
Meyn develops, manufactures, markets and distributes its “wall to wall” poultry processing equipment to over 90 countries. Headquartered in the Dutch town of Oostzaan, it has additional production facilities in the US and Poland.
Emerging market growth
Bengt Maunsbach, partner at the Scandinavian private equity outfit, said the company had had a clear plan when it acquired Meyn in 2005 and that a series of spontaneous offers recently had persuaded it that now was the right time to sell.
"We are pleased with the way Meyn has developed, particularly in the light of the challenging business environment during the global recession experienced a few years ago," he said.
Since buying Meyn early 2005, its revenues increased from €98m in 2004 to €205m in 2011, while EBITDA grew from €12m to €32m, an average annual growth of 15%, he added.
The share of new project sales from fast growing emerging markets such as Russia, India, China and South America has increased from approximately 30% to 60% over the period while the number of employees has doubled from approximately 500 to 1,000.
“We have invested significantly in growth markets, new factories, R&D and strategic acquisitions to ensure Meyn realized its full potential of becoming the market leader in poultry processing equipment,” said Maunsbach.
Subject to approval
New owner CTB said it was confident it could continue the impressive growth curve developed by Altor. The firm is a global player in the design, manufacture and marketing of systems for the poultry, pig, egg production, and grain industries.
”Meyn is a great match for CTB,” said Victor A. Mancinelli, CTB president and CEO. “The acquisition joins together leading companies in two distinct sectors of the poultry industry. The acquisition will provide CTB with the ability to offer global poultry companies total solutions from grow-out through the eventual processing cycle.”
Meyn will retain is current structure and become a new business unit of CTB. The Dutch company’s management will also continue in their current roles.
The transaction is subject to applicable governmental and Dutch work council approvals.