Global law firm Baker McKenzie is advising Marel hf. (“Marel”), a leading global provider of advanced food processing equipment, systems and software, in its agreement to acquire Wenger Manufacturing, LLC (“Wenger”), a global leader in processing solutions focused on pet food, plant-based proteins and aqua feed.

The acquisition of Wenger is a platform investment into new, complementary and attractive growth markets for Marel and will form the fourth business segment alongside poultry, meat and fish. The acquisition is subject to customary closing conditions such as anti-trust and approval of Wenger’s shareholders.

  • Platform acquisition adds a fourth business segment to Marel, in addition to poultry, meat and fish, and pro-forma, expected to contribute around 10% of Marel’s total revenues and 12% of EBITDA.
  • Highly complementary product portfolios and geographic presence with Wenger’s industry-leading extrusion and dryer technology focused on the high growth markets of pet food, plant-based protein and aqua feed.
  • Founded in 1935, Wenger has 500 employees and revenues in 2022 are expected to be USD 190 million, EBITDA USD 32-35 million, and EBIT margin 14-15%.
  • Total investment for the acquisition is USD 540 million and the transaction multiple corresponds to 14x EV/EBITDA adjusted for expected tax benefits of USD 60-70m.
  • Pro-forma leverage following completion of the acquisition is estimated at around 3x net debt to EBITDA, in line with Marel’s targeted capital structure of 2-3x net debt to EBITDA.
  • The acquisition is fully in line with Marel’s 2017-2026 growth strategy which targets 12% average annual increase in revenue through a balanced mix of organic and acquired growth.

Learn more on Marel's website.

Marel's legal team is led by Arni Sigurjonsson, who commented, "Baker McKenzie's standout cross-border team once again delivered superior service, enabling us to seamlessly execute this major strategic acquisition to strengthen and expand our business into new markets."

The Baker McKenzie team advising Marel was led by Dieter Schmitz, who added, "Partnering with Marel's seasoned deal team on such a significant M&A transaction is truly an honor for all of us at Baker McKenzie."

The Baker McKenzie team included:

M&A: Taryn Brown, James Kim, Doriane Nguenang
Antitrust: Brian Burke, Arvind Miriyala
Benefits: Michael Poland, M'Alyssa Mecenas
Trench Rossi Watanabe, in Brazil: Alvaro Gallo* and Victor Sigaud*
Compliance: Peter Tomczak
Employment: Elizabeth Ebersole, Goli Rahimi, Damiya Park
Environment: Jessica Wicha
Foreign Investment: Rod Hunter, Callie Lefevre
IP: Marcela Robledo, Elizabeth Gladstone, Robby Turner
Real Estate: Sarah Winston, Ijeamaka Obasi
Tax: Kai Kramer, Glenn Fox, Ross Staine
Trade: Bart McMillan, Eunkyung Kim Shin, Taylor Parker

Baker McKenzie is a transactional powerhouse, with more than 2,500 deal lawyers in over 46 countries offering leading expertise in the areas most critical for our clients. We excel in complex transactions and cross-border deals – over 60% of our deals are multi-jurisdictional. We are global and local, combining money-market sophistication with local excellence. In 2021 alone, the U.S. Transactions Team handled 15 multi-billion dollar mergers and acquisitions.

*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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