Icelandic company Marel Food Systems recently doubled its size again with the purchase of Stork Food Systems for €415 million ($607 million, £300 million).
Marel specialises in the manufacture of high-tech equipment for food processing companies across the world. Last year Marel bought one of their competitors, Scanvaett of Denmark, as well as AEW Delford in the United Kingdom. The two acquisitions doubled the company’s size.
Stork Food Systems is a Dutch division of Stork N.V. The company manufactures equipment for use in the poultry and meat processing industries. With the purchase, Marel has effectively eliminated some of its competition and doubled its income.
The annual income of Marel is estimated to be around $1 billion. With the acquisition, the company now employs 4,000 people.
According to Marel Food System’s USA President, Einar Einarsson, the acquisition follows a strategy set out by the company several years ago and will allow Marel to enter the market of both primary and further processing. Marel’s strategy aims to triple the company’s size in just five years.
“The first step was to buy AEW Delford and Scanvaett, which doubled the size of [Marel] last year,” said Einarsson. “The acquisition of Stork Food Systems doubles it again — in just two years. Quite aggressive.”
Unlike other companies in the industry, Marel is publicly owned. The sale will be fully completed in the next few months.