John Bean Tech (JBT) has disclosed a new risk, in the Share Price & Shareholder Rights category.
John Bean Tech’s proposed business combination with Marel is set to significantly dilute existing shareholders’ equity and voting power due to the issuance of new shares. Furthermore, the transaction’s structure will result in a substantial increase in the company’s debt levels. This heightened indebtedness could negatively impact John Bean Tech’s financial agility, creditworthiness, and cost of borrowing, potentially forcing the company to curtail investment and seek further capital to manage the new debt obligations.
Overall, Wall Street has a Moderate Buy consensus rating on JBT stock based on 1 Buy.
To learn more about John Bean Tech’s risk factors, click here.