GEA acquires CFS

GEA Group Aktiengesellschaft expands the share of food process technology in its portfolio.

Acquiring the company Convenience Food Systems (CFS) from funds managed by AEA Investors LP, GEA has added to its group one of the most multi-faceted suppliers of secondary food processing and packaging machinery (meat, fish and cheese).

The company, which is headquartered in Bakel, NL, and has some 2000 employees expects a turnover of about euro 400 million ($526.9 million) in this financial year.

The transaction remains subject to approval by the antitrust authorities and is expected to be consummated during the first half of 2011.

"This acquisition follows our declared strategy to expand the food process technology activities of GEA Group horizontally. We are taking our portfolio another big step forward towards the less cyclical food industry. In doing so, we can leverage the brand value of GEA by offering our customers ever more solutions along their entire process chain from one single source," said CEO Jurg Oleas.

The purchase price is based on an enterprise value of about EUR 435 M and will be financed with existing credit facilities.