#Sweden #Stockholm #FoodTech #Munters #Grain & Protein

Munters Divests FoodTech Equipment for Strategic Growth

In a significant move aimed at enhancing its long-term value, Munters Group AB has announced the divestment of its FoodTech Equipment business to Grain & Protein Technologies (GPT), a company backed by American Industrial Partners. This transaction is valued at MEUR 97.5 and is being executed on a cash and debt-free basis, highlighting Munters' strategic shift towards digital solutions in the FoodTech sector.

Strategic Divestment to Enhance Focus

According to Klas Forsström, President and CEO of Munters, this sale is a crucial step towards concentrating on FoodTech digital solutions. The decision follows the company's ongoing efforts to streamline operations within this business area. The divestment includes five production facilities located in Italy, Germany, China, and the US, along with a South African assembly hub and three sales offices scattered across Europe, North America, the Middle East, and Southeast Asia. Approximately 400 employees will transition with the business, underscoring the importance of retaining skilled personnel in this domain.

The FoodTech Equipment offering primarily consists of ventilation equipment tailored for livestock farming and greenhouses, including fans, cooling systems, and CELdek (evaporative cooling pads). In the last financial year, this segment generated annual net sales of MSEK 1,925 and achieved an adjusted EBITA of MSEK 226. Notably, the production and sales of CELdek for the Americas will be integrated into Munters' AirTech segment, enhancing synergies and operational efficiency for that business area.

The Road Ahead for Munters and GPT

As of the first quarter of 2025, the FoodTech Equipment segment will be classified as discontinued operations. Though the divestment will incur a capital loss of approximately BSEK 0.5, Munters anticipates that the move will ultimately benefit the company by allowing it to deepen its focus on the digitalization of its FoodTech offerings, which include advanced software solutions, sensors, and IoT systems.

GPT's owner, American Industrial Partners, is an established private equity firm with a keen interest in industrial businesses. They will leverage Munters' experienced team and legacy in engineering to further enhance their offerings. Forsström expressed confidence that GPT will provide an excellent home for the FoodTech Equipment team as they embark on a new chapter in their development.

This agreement aligns well with GPT's strategy as it stands as a leading provider of grain and seed storage equipment and protein production solutions across North America and South America. By acquiring Munters' FoodTech Equipment segment, GPT is poised to expand its market share and further diversify its product portfolio, including ventilation and control systems crucial for poultry, swine, and egg production.

Conclusion

Munters' divestment of the FoodTech Equipment offering is a strategic pivot towards enhancing its digital capabilities, a move that mirrors broader trends within the industry emphasizing sustainability and innovation. As the agricultural landscape evolves, so too must the tools and technologies that support it. This transition marks a vital step for both Munters and GPT as they work to deliver superior solutions in the ever-important FoodTech sector.

For further updates, Munters' stakeholders are encouraged to stay informed through the company's official channels.

Contact Information:
Line Dovärn, Head of Investor Relations, Email: [email protected], Phone: +46 (0)730 488 444
Daniel Frykholm, Vice President External Relations, Email: [email protected], Phone: +46 (0)702 067 786.