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John Bean (JBT) Buys Alco, Expands Growth in Food Processing
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John Bean Technologies Corporation (JBT - Free Report) has recently acquired a foremost provider of food processing solutions and production lines, Alco-food-machines GmbH & Co. KG (Alco). The buyout strengthens JBT’s product offering in further processing, mainly expanding its offering in convenience meal lines and alternative and plant-based protein technology.
Based in Bad Iburg, Germany, Alco was formed on the idea of Heinz and Gertrud Algra to make the best machines in the industry, which nowadays produce Pizza and noodle sauces to convenience and snack foods. Alco is appropriate for John Bean as its brands and broad food and beverage platform offer excellent opportunities in the food domain. The buyout supports JBT’s goal to be the favored solutions partner for its customers, buoyed by its unmatched application expertise and best-in-class local service support. Alco also reinforces John Bean’s presence and capabilities in the key German market.
Alco expects revenues for the current year to be approximately $35 million with low double-digit growth in EBITDA margins before synergies. John Bean expects this deal is likely to be approximately two cents accretive on current-year adjusted earnings per share.
John Bean has a strategic acquisition program focused on companies that add complementary products, enabling it to offer more comprehensive solutions to customers. In the last few years, the company acquired Proseal UK Limited, Prime Equipment Group and certain assets and liabilities of MARS Food Processing Solutions. In 2021 the company bought AutoCoding Systems to strengthen its abilities in the growing global market for in-line coding and inspection solutions. The addition of Prevenio last year expanded the recurring revenue stream and ability to address the food safety needs of customers. It closed the buyout of Urtasun in the fourth quarter of 2021, which expanded its product offering in fruit and vegetable processing.
JBT, a global technology solution provider for the food processing industry intends to ramp up initiatives that were previously underway to bring automation solutions to the protein market. 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. The Liquid food market has a worth of $8 billion. The company has ample scope for growth in both markets.
The company’s FoodTech segment witnessed an improvement of 7% in orders in first-quarter 2022, backed by demand for red meat, poultry, bakery, pet food, plant-based, ready meals, and pharmaceutical/nutraceutical applications. The segment will gain from high demand for packaged food purchases, and the recovery in food service and revenue growth is expected at 15-18% in 2022.
Share Price Performance
John Bean’s shares have declined 29.6% in the past six months compared with the industry’s plunge of 41.8%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.
Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.
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John Bean (JBT) Buys Alco, Expands Growth in Food Processing
John Bean Technologies Corporation (JBT - Free Report) has recently acquired a foremost provider of food processing solutions and production lines, Alco-food-machines GmbH & Co. KG (Alco). The buyout strengthens JBT’s product offering in further processing, mainly expanding its offering in convenience meal lines and alternative and plant-based protein technology.
Based in Bad Iburg, Germany, Alco was formed on the idea of Heinz and Gertrud Algra to make the best machines in the industry, which nowadays produce Pizza and noodle sauces to convenience and snack foods. Alco is appropriate for John Bean as its brands and broad food and beverage platform offer excellent opportunities in the food domain. The buyout supports JBT’s goal to be the favored solutions partner for its customers, buoyed by its unmatched application expertise and best-in-class local service support. Alco also reinforces John Bean’s presence and capabilities in the key German market.
Alco expects revenues for the current year to be approximately $35 million with low double-digit growth in EBITDA margins before synergies. John Bean expects this deal is likely to be approximately two cents accretive on current-year adjusted earnings per share.
John Bean has a strategic acquisition program focused on companies that add complementary products, enabling it to offer more comprehensive solutions to customers. In the last few years, the company acquired Proseal UK Limited, Prime Equipment Group and certain assets and liabilities of MARS Food Processing Solutions. In 2021 the company bought AutoCoding Systems to strengthen its abilities in the growing global market for in-line coding and inspection solutions. The addition of Prevenio last year expanded the recurring revenue stream and ability to address the food safety needs of customers. It closed the buyout of Urtasun in the fourth quarter of 2021, which expanded its product offering in fruit and vegetable processing.
JBT, a global technology solution provider for the food processing industry intends to ramp up initiatives that were previously underway to bring automation solutions to the protein market. 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. The Liquid food market has a worth of $8 billion. The company has ample scope for growth in both markets.
The company’s FoodTech segment witnessed an improvement of 7% in orders in first-quarter 2022, backed by demand for red meat, poultry, bakery, pet food, plant-based, ready meals, and pharmaceutical/nutraceutical applications. The segment will gain from high demand for packaged food purchases, and the recovery in food service and revenue growth is expected at 15-18% in 2022.
Share Price Performance
John Bean’s shares have declined 29.6% in the past six months compared with the industry’s plunge of 41.8%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
John Bean currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company (GPK - Free Report) , Myers Industries (MYE - Free Report) and Titan International , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 8% in the past six months.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have increased 25% over the last six months.
Titan International has an estimated earnings growth rate of 112% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 55%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have soared 46.7% in six months.