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Marel agrees to acquire Sulmaq
26 Jul 2017
Established in 1971, Sulmaq is at the forefront of providing primary processing solutions to the pork and beef industries in Central and South America. Marel is the leading global provider of advanced processing systems and services to the poultry, meat and fish industries. Together, Marel and Sulmaq will be at the forefront of developing innovative, full-line solutions and equipment for meat processors around the globe.
Over the years, Marel has grown organically as well as through the acquisition of several internationally renowned brands like MPS, Stork and Scanvaegt. The Sulmaq acquisition is in line with Marel’s strategy to be a full line supplier to the poultry, meat and fish industries globally. Brazil is the second largest producer of beef and the third largest producer of poultry meat in the world and this step will result in a stronger position in Central and South America.
Sulmaq is based in the state of Rio Grande do Sul in southern Brazil. The company employs around 400 employees and their main solutions include hog slaughtering lines, cattle slaughtering lines, cutting and deboning, viscera processing and food logistics. Sulmaq has a large installed base throughout Central and South America and strong customer relationships. The company also develops and manufactures precision investment castings for various market segments. Sulmaq’s annual revenue is around 25 million EUR.
Marel is committed to investing in Brazil and the Central and South American market, as the company believes in its growth potential, advanced agriculture and the access to resources for the food industry.
Arni Oddur Thordarson, CEO of Marel:
“Sulmaq is a great addition to Marel’s portfolio. Sulmaq has a very strong position in Central and South America and has been on the forefront of providing primary meat solutions in the region. Marel has had great success in the poultry and fish markets in South America over the last two decades and is now gearing up for further growth in the region. We are committed to investing in further growth and innovation to add value for our current and future customers. 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, Director Commercial, Sulmaq:
"By the late 2000's we had gained a premier position in the red meat segment in Central and South America. Today, we see a great opportunity in being a part of Marel, an innovative pioneer in our field. We really believe in the growth prospects and long-term outlook for us with Marel and the added value we will be able to offer our customers. Being a part of a larger organization also means that our employees will benefit from even more career opportunities."
Completion of the acquisition
The acquisition is expected to close in the third quarter of 2017, subject to customary closing conditions but anti-trust approval is not required. Sulmaq’s leaders, Fernando Roos, Henrique Roos and Julio Roos, are instrumental for the future of Marel and they will continue in their current positions at Sulmaq. Sulmaq will be run as standalone business with support from Marel while the companies work on creating the optimal set-up, which will enable them to serve their customers in the best possible way in the future.