Marel hf. announces the acquisition of all shares in the Danish food equipment manufacturer Scanvaegt International AS. With this move, Marel and Scanvaegt will create a strong player able to meet the demands of the ever-consolidating global food industry. Marel and Scanvaegt each hold a strong position in food industry processing equipment, as well as IT systems and turn-key processing lines.
PHOTO: Mr. Hordur Arnarson, CEO of Marel, Mr. Lars Grundtvig, Chairman of Scanvaegt and Mr. Árni Oddur Þórðarson, Chairman of the Board of Marel.
“Scanvaegt has a very good reputation and high-quality products. It is important to stress that this is a joining of forces between two very good companies,” says Mr. Hordur Arnarson, CEO of Marel. “We regard it as an important step towards fulfilling Marel’s strategy of becoming one of the leading global manufacturers of food processing equipment, and to triple the Group’s annual revenues in the next three to five years. Together, we can improve our product offering by boosting product development, lowering costs and increasing the profitability of Marel and Scanvaegt, in addition to benefiting the industry.”
The revenue of the Marel Group will increase by over 100 percent in 2006 with the recent acquisition of British AEW Delford Systems, and now Scanvaegt. A significant increase in sales is anticipated as new and existing products will be offered through the combined sales channels of Marel and Scanvaegt, thereby strengthening successful organic growth. The two companies will continue to operate in the market as two separate business units with two individual brands.
“The many mergers and acquisitions in the food industry are creating ever-larger companies,” says Mr. Lars Grundtvig, Chairman of Scanvaegt. “Scanvaegt and Marel have to grow as well, and I am confident that the joining of the companies will lead to further profitable growth for both, with a wider product range to meet the growing demands of the food processing industry. I want to see this happen, which will give the people at Scanvaegt new opportunities for developing as part of a company with a large global potential, as well as provide better service to our customers.”
Mr. Larus Asgeirsson, Sales Director and Deputy CEO of Marel, has moved to Århus and will lead the operation of the Scanvaegt Group together with Erik Steffensen, managing director, and the existing management team. Mr. Sigurpall Jonsson, Director of Customer Service at Marel, will also join the Scanvaegt organization to direct business development and synergies. The Grundtvig family will hold 18 percent of shares in Marel hf making them the third largest shareholder.
The Marel Group will have 2000 employees, of which 795 are in Denmark, 350 in Iceland and 380 in the UK, as well as 30 sales offices around the world.
For further information, please contact: Media Relations at Marel, tel. +354 825-8205 and media@marel.com
About Marel hf
Founded in 1983, Marel has risen to become one of the world’s leading developers of high-tech food processing equipment. The Group comprises three principal companies labelled as “Partners in Processing”: Marel hf, Carnitech and AEW Delford Systems, along with 16 other subsidiaries in 14 countries and branch offices in 5 countries. In addition, the Group has a global network of over 50 agents and distributors that market, sell, and service its products. Together, the companies which make up the Marel Group supply a complete range of processing equipment to all sectors of the food processing industry.
About Scanvaegt AS
Scanvaegt was founded in 1932 by Knud Grundtvig, and has until now been owned and operated by the Grundtvig family. The company is a leading supplier of equipment for the food-processing industry, with 19 subsidiaries in 16 countries and branch offices in 2 countries. Scanvaegt has pioneered in the food processing industry industry. The company employs 700, of which over 440 are based in Denmark where the majority of Scanvaegt’s production takes place. In addition, Scanvaegt operates a smaller manufacturing facility in Brazil.
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