We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
John Bean (JBT) Inks Deal With Prevenio to Improve Food Safety
Read MoreHide Full Article
John Bean Technologies Corporation (JBT - Free Report) has entered into an agreement to acquire Prevenio for $170 million. Based in Bridgewater, NJ, Prevenio is a leading provider of food safety solutions mainly focused on serving the poultry industry. The buyout will be accretive to John Bean’s adjusted earnings per share by 3 cents in the ongoing year and approximately 10 cents in the next year.
Prevenio offers highly effective pathogen protection through its anti-microbial delivery solution which helps significantly improve food safety and integrity, while creating a safer work environment for its customers and employees. Additionally, the company offers proprietary turnkey solutions to its customers, while assuring safe and effective delivery of anti-microbials.
The latest buyout will enhance John Bean’s recurring revenue portfolio and advances its investment in solutions for customers’ day-to-day operations. In fact, this investment supports John Bean’s focus on protecting customers' brands and reputation by preventing foodborne diseases. It will also shield customers from pathogen threats in their daily plant operations. The transaction is likely to close in third-quarter 2021. The deal is expected to accretive to John Bean FoodTech segment’s adjusted EBITDA margins.
John Bean’s FoodTech segment is gaining from higher demand for packaged food purchases and "eat-at-home" trend amid the pandemic. In addition, Liquid Foods’ end products, such as juice, canned foods and ready meals, continue to witness high retail demand. The protein market has a total estimated market size of $18 billion, while the Liquid food market has a worth of $8 billion. The company has ample scope to grow in both markets.
John Bean has a strategic acquisition program focused on companies that add complementary products, which enable it to offer more comprehensive solutions to customers. In the last few years, the company has acquired Proseal UK Limited, Prime Equipment Group, and certain assets and liabilities of MARS Food Processing Solutions. This March, the company took over AutoCoding Systems that will fortify John Bean’s abilities in the growing global market for in-line coding and inspection solutions, including hardware and software for pharmaceutical, food & beverage, and nutraceutical customers.
Moreover, the company has been delivering strong EBITDA margin performance on its process-optimization efforts and JBT Operating System discipline, and rapid implementation of cost-containment actions. John Bean’s restructuring plan across the FoodTech and AeroTech segments are likely to deliver cost savings of $5 million during 2021.
John Bean projects adjusted earnings per share to lie between $4.40 and $4.60 for the current year. The mid-point of the range suggests growth of 14% from 2020.
Share Performance
The stock has gained 25.1% so far this year, compared with the industry’s growth of 30.2%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.
Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.
Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
John Bean (JBT) Inks Deal With Prevenio to Improve Food Safety
John Bean Technologies Corporation (JBT - Free Report) has entered into an agreement to acquire Prevenio for $170 million. Based in Bridgewater, NJ, Prevenio is a leading provider of food safety solutions mainly focused on serving the poultry industry. The buyout will be accretive to John Bean’s adjusted earnings per share by 3 cents in the ongoing year and approximately 10 cents in the next year.
Prevenio offers highly effective pathogen protection through its anti-microbial delivery solution which helps significantly improve food safety and integrity, while creating a safer work environment for its customers and employees. Additionally, the company offers proprietary turnkey solutions to its customers, while assuring safe and effective delivery of anti-microbials.
The latest buyout will enhance John Bean’s recurring revenue portfolio and advances its investment in solutions for customers’ day-to-day operations. In fact, this investment supports John Bean’s focus on protecting customers' brands and reputation by preventing foodborne diseases. It will also shield customers from pathogen threats in their daily plant operations. The transaction is likely to close in third-quarter 2021. The deal is expected to accretive to John Bean FoodTech segment’s adjusted EBITDA margins.
John Bean’s FoodTech segment is gaining from higher demand for packaged food purchases and "eat-at-home" trend amid the pandemic. In addition, Liquid Foods’ end products, such as juice, canned foods and ready meals, continue to witness high retail demand. The protein market has a total estimated market size of $18 billion, while the Liquid food market has a worth of $8 billion. The company has ample scope to grow in both markets.
John Bean has a strategic acquisition program focused on companies that add complementary products, which enable it to offer more comprehensive solutions to customers. In the last few years, the company has acquired Proseal UK Limited, Prime Equipment Group, and certain assets and liabilities of MARS Food Processing Solutions. This March, the company took over AutoCoding Systems that will fortify John Bean’s abilities in the growing global market for in-line coding and inspection solutions, including hardware and software for pharmaceutical, food & beverage, and nutraceutical customers.
Moreover, the company has been delivering strong EBITDA margin performance on its process-optimization efforts and JBT Operating System discipline, and rapid implementation of cost-containment actions. John Bean’s restructuring plan across the FoodTech and AeroTech segments are likely to deliver cost savings of $5 million during 2021.
John Bean projects adjusted earnings per share to lie between $4.40 and $4.60 for the current year. The mid-point of the range suggests growth of 14% from 2020.
Share Performance
The stock has gained 25.1% so far this year, compared with the industry’s growth of 30.2%.
Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Tennant Company (TNC - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Arconic Corp. . All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.
Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.
Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>