XANO has signed an agreement, via a subsidiary, to buy all the shares in the Danish company Jorgensen Engineering A/S. Moll Wendén was legal advisor to XANO in the transaction.
Jorgensen is a leading international automation company that supplies and integrates equipment and complete packaging solutions. Jorgensen offers a wide range of packaging machinery and solutions to customers within the milk powder, food, pharmaceuticals and pet food segments. The company is situated in Odense, Denmark, and has around 110 employees.
During the financial year 2015/2016, revenue totaled DKK 275 million with an operating margin of approx. 13 percent.
The purchase sum, to be paid in cash, totals DKK 245 million on a debt free basis. The acquisition is expected to contribute SEK 3.50 in earnings per share on a yearly basis. The transaction is contingent on a confirmatory due diligence and is expected to be completed during November.
Jorgensen will be a part of XANO’s Industrial Solutions business unit. The product range is contiguous and complementary to Fredriksons’ and Canline’s conveyor solutions for the packaging industry as well as NPB’s automation equipment for lid handling.
The acquisition will bring additional expertise to the operations of the business unit and access to new market segments. A close working relationship between the companies will strengthen the individual entities and the shared resources will enable them to provide the market with complete end-to-end solutions and the capacity to execute large-scale automation projects.