GEA Group Aktiengesellschaft has expanded the share of food process technology in its portfolio through the acquisition of Convenience Food Systems (CFS) from funds managed by AEA Investors LP.
CFS specialises in performance-focused solutions for the food industry, from a single machine or packaging material to a complete production line for the preparation, marination, processing, slicing and packaging of primarily fish, seafood, meat, poultry and cheese-based products.
The transaction is subject to approval by the antitrust authorities and is expected to be completed during the first half of 2011.
“This acquisition follows our declared strategy to expand the food process technology activities of GEA Group horizontally. We are taking our portfolio another big step forward towards the less cyclical food industry. In doing so, we can leverage the brand value of GEA by offering our customers ever more solutions along their entire process chain from one single source,” said Jürg Oleas, CEO of GEA Group.
“In the medium-term, GEA sees potential to considerably boost profits at CFS in co-operation with the existing management and to realise synergies with existing GEA businesses,” said Niels Graugaard, member of the executive board and COO of GEA.
“The market segment of animal proteins is one of the fastest growing within the entire food industry. As part of the GEA Group we will have the chance to develop new customers and find access to new markets. GEA offers ideal growth conditions for an innovative and quality focused company such as CFS,” added Brian McCluskie, CEO of CFS.
Netherlands-based GEA is one of the largest system providers for food and energy processes with about €4.4 billion ($5.8 million) in 2009 revenue.
The group gains about 70% of its revenue in the long-term growing food and energy industries. Its company's workforce comprised over 20,000 employees worldwide as of 30 September 2010.
