Together, Marel and Sulmaq will develop a suite of “innovative, full-line solutions and equipment” for meat processors all over the world, the companies said in a joint statement.
Based in the southern Brazilian state of Rio Grande do Sul, Sulmaq boasts a 400-strong workforce and posted around €25m in revenue last year. It supplies multi-species slaughter lines, cutting and deboning equipment, as well as viscera processing and food logistics solutions.
For Iceland-based Marel, which has 4,700 staff, the takeover is part of a strategy to become full-line equipment supplier to the global meat, poultry and seafood industry.
‘Great’ long-tern potential
Marel has wanted to strengthen its position in Brazil, one of world’s largest beef and poultry producers, for some time. Its takeover may also suggest the South American country is still viewed by the business world as an attractive place to invest, despite the rotten meat scandal less than six months ago.
Árni Oddur Thórdarson, CEO of Marel, said the acquisition was “a great addition” and added the business was “gearing up for further growth” in South America.
“We are committed to investing in further growth and innovation to add value for our current and future customers,” said Thordarson.
“The acquisition is not expected to have a material impact on Marel’s financial results in the short term. However, the long-term market potential is great in this 600 million people market for poultry, meat and fish processing, both for companies supplying for regional consumption and for export around the globe.”
Fernando Roos, commercial director at Sulmaq, said being part of a larger company would unlock new career opportunities for staff and add value to its customer base.
The takeover is expected to close by the third quarter of 2017.