Platform acquisition adding a fourth business segment to Marel, in addition to poultry, meat and fish, and pro-forma, expected to contribute around 10% of Marel’s total revenues and 12% of EBITDA.
Highly complementary product portfolios and geographic presence with Wenger’s industry-leading fish feed plant https://www.zenopelletmachine.com/product/floating-fish-feed-production-line/ extrusion and dryer technology focused on the high growth markets of pet food, plant-based proteins and aqua feed.
Founded in 1935, Wenger has 500 employees and revenues in 2022 are expected to be USD 190 million, EBITDA USD 32-35 million, and EBIT margin 14-15%.
Total investment for the acquisition is USD 540 million and the transaction multiple corresponds to 14x EV/EBITDA adjusted for expected tax benefits of USD 60-70m.
Pro-forma leverage following completion of the acquisition is estimated at around 3x net debt to EBITDA, in line with Marel’s targeted capital structure of 2-3x net debt to EBITDA.
The acquisition is fully in line with Marel’s 2017-2026 growth strategy which targets 12% average annual increase in revenue through a balanced mix of organic and acquired growth.

New business segment to become a fourth pillar of the business model
A new business segment, based on the Wenger platform, will constitute Marel’s fourth pillar alongside poultry, meat and fish, and will be focused on the sizeable and attractive growth markets of pet food, plant-based proteins and aqua feed. On a pro-forma basis, this new business segment will account for around 10% of Marel’s total revenues and 12% of combined EBITDA.

This new growth platform is an important addition to Marel’s product portfolio to meet customers’ rising demand for high-quality food and feed that is processed in a sustainable and affordable way.

The two companies have a great strategic and cultural fit with highly complementary product portfolios and geographic presence, creating a strong platform to enhance further growth. Wenger shares Marel’s passion for innovation and commitment to best-in-class products, backed by an experienced team and long-standing partnerships with customers. Wenger enjoys a diversified and loyal customer base ranging from blue-chip fish feed pellet machine https://www.zenopelletmachine.com/product/floating-fish-feed-pellet-machine/ to startup companies in plant-based proteins. This has resulted in healthy profitability, strong cash flow and solid return on invested capital. Capitalizing on Marel’s global reach and digital platform, the two companies are well positioned to explore future growth opportunities together.

Growth platform into new and attractive growth markets
The global petfood and aqua feed markets are estimated at over EUR 100 billion and EUR 50 billion respectively and growing at 5-6% annually. The plant-based protein market is currently around EUR 7 billion and expected to grow 15-20% annually.

The addressable market for Marel and Wenger in solutions and services within pet food, plant-based proteins and aqua feed is estimated to be around EUR 2 billion with expected annual growth of 4-6%, in line with Marel’s long-term market growth expectations. Marel aims to grow faster than the market, based on its continuous innovation and global reach.

Throughout the years, Marel has gradually expanded its playing field and is now the only pure-play provider of full-line solutions, software, and services to the poultry, meat, and fish industries. In the vision solidified in 2016, the scope was widened from the three animal proteins to focus more generally on transforming food processing. In 2020, Marel announced an increased focus on adjacent markets and in 2021 it formally established a business development division focused on pet food and plant-based proteins. Adding Wenger’s strong capabilities in that area, Marel is accelerating its journey and is well positioned to capitalize on providing transformational solutions to the large and attractive growth markets of pet food, plant-based proteins, and aqua feed.

Marel sees great opportunities and is committed to invest in the combined business to accelerate growth. The acquisition is expected to be margin and earnings enhancing. Planned initiatives include expanding manufacturing capacity to respond to high demand in Wenger’s core markets. Aftermarket revenues represent over 40% of Wenger’s revenues, and Marel’s global reach