Marel to Sell Stork Food & Dairy Systems

The assets sold are impaired, leading to a loss of EUR 16.4 mln, mainly due to the write off of goodwill and revalued assets, which has been included in the 2009 accounts.

11 Feb 2010 --- Marel has reached an agreement with the Dutch investor Nimbus on the sale of the Food & Dairy Systems division of Stork Food Systems, excluding its operations in Spain.

The sale of Food & Dairy Systems, a non-core operating unit, is part of Marel’s strategy to focus on the profitability and organic growth of its core business, centring on the fish, meat, poultry and further processing segments of the food processing industry. Marel is the leading global provider of advanced equipment and systems to these industry segments, with a 15% market share.

The assets sold are impaired, leading to a loss of EUR 16.4 mln, mainly due to the write off of goodwill and revalued assets, which has been included in the 2009 accounts.

“Marel’s strategy since the merger with Stork Food Systems in May 2008 has been to increase the focus on the company’s core business. The operations of Stork Food & Dairy Systems fall outside that framework and the unit has therefore been defined as a non-core business.

Stork Food & Dairy Systems has gone through a successful process of refocusing and renewal of its product portfolio, thanks to the efforts of its employees and skilled management team. We are convinced that the company will prosper under Nimbus’ ownership.

For Marel, the sale is a very positive step forward. It paves the way for us to further sharpen the focus on our core business and to build on our position as market leader.”

Stork Food & Dairy Systems’ business focuses primarily on the development, production and supply of processing and filling lines for dairy, juice, and liquid food products. In 2009, the unit (excluding its operations in Spain) accounted for 11% of Marel’s revenues, with a turnover of EUR 61 mln.