Third purchase this year reflects company’s aggressive growth strategy
Hungry for protein business, JBT Corporation acquires Wolf-tec for $54m
Kingston, New York-based Wolf-tec manufactures processing equipment for poultry, beef, pork, and seafood products. Its technologies focus on ingredient preparation, blending, injection, marination, massaging, and portioning — areas in which JBT sought to strengthen its equipment portfolio.
“We already had an extensive presence in poultry further processing,” Steve Smith, executive vice president of JBT and president of JBT FoodTech told FoodProductionDaily. “The addition of Wolf-tec’s products extends our reach into pork, beef and seafood processing as well as secondary processing.”
Wolf-tec is the third food equipment company that Chicago, Illinois-based JBT has acquired this year, Smith noted.
Full steam ahead
In July, JBT purchased ICS Solutions from Stork Food & Dairy Systems. ICS manufactures high-capacity, in-container sterilization systems for the beverage, dairy and canning industries. In October, JBT acquired Swedish cooking equipment manufacturer Formcook AB.
“All three [acquisitions] support our strategy of acquiring leading companies that strengthen our protein processing and liquid foods portfolios,” JBT chairman, president and CEO Tom Giacomini said in a news release.
Purchasing companies with technologies complementary to JBT’s existing lineup is one of several key elements of the company’s “Next Level” approach to growth, Smith said.
In addition to purchasing equipment portfolios, JBT is working to develop new technologies and identify opportunities in emerging markets. Smith referred to a recent presentation JBT executives made to investors, which outlined the company’s goals and projections through 2017.
Future focus
From revenues of $934m in 2013, the company projects that by 2017 it will reach $1.2-1.3bn in sales, with an operating income margin of 8-10%.
To get there, JBT’s leadership team will use a three-pronged approach, according to the presentation. The company will: 1) fix profitability to drive economic returns and generate cash for growth; 2) develop capabilities to achieve disciplined growth, and 3) focus on initiatives that “move the Grow needle.”
The presentation also noted that customers in over 100 countries are driving JBT’s revenue. It identified emerging markets (China, India, Latin America, Eastern Europe) as areas of opportunity, representing 28% of total revenues in 2013.
