Marel to buy pet food and aqua feed supplier Wenger Manufacturing for $540m
Marel has agreed to acquire Wenger Manufacturing, an American supplier of pet food, plant-based proteins, and aqua feed, for $540 million.
According to the Iceland-based food processing company, the acquisition of the Sabetha, Kansas-based Wenger Manufacturing marks a platform investment into new, complementary, and attractive growth markets. The US firm’s operations will become the fourth business segment for Marel after poultry, meat, and fish.
Wenger Manufacturing is said to have a diversified customer base ranging from blue-chip pet food processors to start-ups in plant-based protein.
Marel said that the addressable market for the company and Wenger Manufacturing in solutions and services within pet food, aqua feed, and plant-based proteins is projected to be nearly €2 billion with 4-6% in expected annual growth.
The Icelandic food processing company plans to expand manufacturing capacity to cope with high demand in the core markets of Wenger Manufacturing.
Marel’s global reach as well as its digital platform are expected to support a more proactive aftermarket approach for Wenger Manufacturing to better cater to customers across the globe.
Trevor Angell — Board of Directors Chairman of Wenger Manufacturing, commenting on Marel acquisition of Wenger Manufacturing, said: “Marel has invested significantly in its global reach and digital platform, which will improve Wenger’s ability to be the partner of choice for our clients throughout the long life-cycle of our equipment.
“Further, our dedicated team will be joining a large, healthy, international organization where they can grow and see increased opportunities.”
Wenger Manufacturing is anticipated to contribute nearly 10% of the total revenues of Marel.
Established in 1935, Wenger Manufacturing has a workforce of 500 employees. Its revenues in 2022 are estimated to be $190 million.
Commenting on Marel acquisition of Wenger Manufacturing, Arni Oddur Thordarson — CEO of Marel said: “We are thrilled to join forces with the great team in Wenger with whom we have a strong strategic and cultural fit. Wenger’s passion for innovation and commitment to high-quality solutions, in addition to their excellent customer focus and talent management, are the key attributes Marel is proud to partner with.
“Wenger is a true leader in its field of providing solutions and services to the pet food industry and aqua feed industries, and has in recent years made its mark on the fast-growing plant-based protein consumer market with best-in-class solutions positioned right in the center point of the value chain.”
The deal, which is subject to customary conditions such as anti-trust and shareholder approval of Wenger Manufacturing, is likely to close during Q2 2022.