Baird says JBT bid for Marel ‘good overall strategic fit’

Baird analyst Mircea Dobre keeps an Outperform rating on JBT Corp. (JBT) with a $121 price target after the company submitted an unsolicited non-binding proposal to acquire all outstanding shares in Marel (MRRLF). The firm sees a “good overall strategic fit and meaningful cost synergy potential.” The strategic rationale, the implied multiple as well as the transaction structure of 75% stock and 25% cash are attractive from JBT’s standpoint, the analyst tells investors in a research note. The deal would expand JBT’s presence in the “fast-growing” pet food space and Marel has differentiated automation technology which should catalyze future growth, adds Baird. However, the firm is less clear on whether the initial proposal will be enough to get a deal done.