JBT Corporation (JBT) recently announced that it has signed an agreement to acquire Prevenio, a leading provider of innovative food safety solutions for the poultry industry, for $170 million. The deal is likely to close in the third quarter of 2021.
Following the news release, shares of the technology solutions provider catering primarily to the food and beverages industry declined marginally to close at $141.46 in Monday’s trading session.
With Prevenio expected to generate annual revenues of $50 million in 2021, JBT forecasts the acquisition to be accretive to its adjusted EPS to about $0.03 in 2021 and $0.10 in 2022.
CEO of JBT Brian Deck said, “JBT’s investment in Prevenio furthers our support in the protection of our customers’ brands and reputation by focusing on the prevention of foodborne illness. Prevenio’s solutions ensure anti-microbial dosing precision and effectiveness with automated process controls, allowing it to provide a tailored approach to protect food and flavor profile. Prevenio further broadens JBT’s non-equipment offering while helping customers protect against pathogen threats in their daily plant operations.” (See JBT stock chart on TipRanks)
Recently, Robert W. Baird analyst Mircea Dobre reiterated a Buy rating on the stock with a price target of $151, which implies upside potential of 6.7% from current levels.
According to Dobre, the acquisition of Prevenio is likely to be value accretive to the company. Moreover, the analyst believes that food safety is expected to be an “attractive vertical” in the wider food processing industry, which gives it a solid footing.
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average JBT price target of $160.33 implies upside potential of 13.3% from current levels. Shares have gained 70.8% over the past year.
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