IPPE 2017

JBT targets South American market following acquistions

By Rod Addy

- Last updated on GMT

Tipper Tie said its takeover by JBT has already led to factory modernisation work
Tipper Tie said its takeover by JBT has already led to factory modernisation work

Related tags Mergers and acquisitions Beef Lamb Pork Poultry Processing equipment & plant design

South America is a key target market for Tipper Tie and Cooling & Applied Technologies (CAT) following their takeover by food and drink processing machinery supplier JBT Corp towards the end of 2016.

We think the South American market will be big for us,​” Bart Langley, CAT general manager told GlobalMeatNews​ at the International Production & Processing Expo 2017 in Atlanta, US.

JBT completed its acquisition of CAT​, which supplies the poultry industry with high-quality chilling systems, injection systems, whole muscle pumps, and plant monitoring and weighing systems, in October 2016.

Chilling and injecting are the primary two big applications we see in Brazil,​” said Langley, who added that there would be particular opportunities for CAT in Brazil’s fish market. “JBT is a good group in the salmon industry in Brazil, although our core business is going to be in poultry.​”

Other markets

However, he said other markets offered a lot of potential too: “We have sold our first chilling system in China… Australia and Malaysia are strong.​”

Shelly Ryder, marketing communications manager at Tipper Tie, which supplies clipping and processing machines and materials, told this site: “I believe JBT is planning to increase its presence in Asia and Brazil.​”

Commenting on Tipper Tie’s performance at IPPE, Ryder said: “Business is going great. Yesterday we had more leads than all three days combined in the last three years of this show,​” she said at the jointly branded JBT/Tipper Tie stand at IPPE, following JBT’s completed acquisition of the company​ in November 2016.

JBT has already started modernising our plant and I think there’s going to be more of that to come.​”

Representatives of both companies praised the acquisitions, claiming they could boost trade for the combined group. They also reported positive communications with JBT in the early stages of the integration process.

Welcome home’

Tom [Giacomini], president and CEO of JBT, met with us and said, ‘welcome home’,​” Shelly Ryder, Tipper Tie marketing communications manager said. “It’s a good family fit for Tipper.​”

GlobalMeatNews​ understands that JBT aims to retain the Tipper Tie and CAT brands alongside its own, while just running a single stand at trade shows.

JBT bought Tipper Tie for US$160 million and CAT for US$90m. At the time it said Tipper Tie would contribute annual revenue of US$90m, while CAT would add US$50m in annual sales.

‘Deep technical knowledge’

When JBT first announced its acquisition of CAT in September last year, Giacomini said: “The addition of CAT enhances JBT’s presence in primary and secondary protein processing and advances our strategic acquisition programme in proteins and liquid foods.

The CAT team brings deep technical knowledge, an excellent reputation and strong relationships within the poultry industry, enhancing JBT’s value proposition in the domestic market. As part of JBT, CAT will access our global sales and service organisation, driving geographic expansion of its technology.​”

Referring to the takeover of Tipper Tie from holding company Dover the following month, he said: “The addition of Tipper Tie expands JBT’s protein platform to include complementary packaging solutions, enabling us to offer even greater value to our customers.

Tipper Tie’s globally recognised brand, advanced technology and relationships with major food processors in the US and Europe will prove critical as we grow the company’s presence in Asia and Latin America.

The company also has a large installed equipment base that generates high recurring revenues from consumables and aftermarket parts sales.​”

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