Blog Exposure – Welbilt to Acquire Crem International

Stock Monitor: Milacron Holdings Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 28, 2018 / Active-Investors.com has just released a free research report on Welbilt, Inc. (NYSE: WBT). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WBT as the Company’s latest news hit the wire. On February 26, 2018, the Company, which is a leading global provider of commercial foodservice equipment, declared that it has entered into a definitive agreement to acquire 100% of the shares of Avaj International Holding AB (Crem International or “Crem”). At present, private equity firms Priveq Investment Fund IV L.P. and SEB Venture Capital hold the majority of the shares of Avaj International. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Milacron Holdings Corp. (NYSE: MCRN), which also belongs to the Industrial Goods sector as the Company Welbilt. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Welbilt most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=WBT

Crem, Leading Manufacturer of Professional Coffee Machines

Crem is a leading global manufacturer of professional coffee machines. The Company develops, manufactures, and markets coffee machines under three brands, i.e. Coffee Queen, Expobar, and Spengler. These machines are widely used in offices, restaurants, cafes, coffee shops, catering, as well as convenience stores. The Company offers a wide range of professional coffee machines, including manual and automatic espresso and filter coffee machines besides instant, liquid, freestanding, and other machines.

With over 50 years of experience, Crem sells its equipment in more than 80 countries. The Company is headquartered in Solna, Sweden, with three manufacturing sites in Åmotfors (Sweden), Gandia (Spain), and Shanghai (China). Three research and development (R&D) centers and six sales offices back these three manufacturing facilities.

Financial Implications

Welbilt has agreed to pay a total consideration of approximately SEK 1,800 million ($224 million) for the transaction. The Company intends to fund the transaction through existing cash on hand and credit lines.
The transaction is still subject to certain closing conditions, post which it is expected to close in the second quarter of 2018.
Crem’s total sales for FY17 were approximately SEK 767 million ($90 million). Welbilt expects the transaction to be accretive to earnings from the latter part of 2018 and the run-rate synergies to grow to approximately $10 million by 2020.

Acquisition Marks Welbilt’s Entry into Hot Beverage Market

The acquisition of Crem is an important milestone in fulfilling Welbilt’s goal of complementing its organic growth strategy with selective bolt-on acquisitions.

Crem’s acquisition would add the fast-growing hot coffee category to Welbilt’s extensive portfolio and thus, extend its full-line of commercial foodservice equipment coverage. As a result, Welbilt would be able to have the broadest portfolio of hot and cold beverage equipment of any Company in the market.
Moreover, Crem’s strong presence in Europe and Asia would help Welbilt expand its presence in these two important regions. In fact, there are meaningful cross-selling opportunities between Crem’s and Welbilt’s respective customer bases in those regions.
Furthermore, the acquisition also provides Welbilt an opportunity to add Crem to its customer base in the US and include it as a core offering in its fitkitchenSM system solutions.

Crem to Benefit from Improved Market Access

Crem is thrilled to join forces with Welbilt. The Company has emerged as one of the global leaders in professional coffee machines with a unique breadth of technology and solutions, as well as an innovative and competitive product portfolio.

Crem is expected to benefit from Welbilt’s strong family of brands and products. The acquisition will help Crem enhance the reach of its product portfolio through improved market access. Besides, its customers will also benefit from Welbilt’s expertise in new product development and manufacturing process improvement.

Karl-Johan Willén, Partner at Priveq Advisory AB, and who also acted as Adviser to Priveq G.P. IV Ltd, welcomed the arrival of Welbilt as the new owner and strategic partner for Crem. He believes that Crem has found the best partner in Welbilt. Welbilt’s sizeable access and experience in relevant markets will maximize Crem’s potential for future success.

Stock Performance Snapshot

February 27, 2018 – At Tuesday’s closing bell, Welbilt’s stock fell 4.59%, ending the trading session at $19.95.

Volume traded for the day: 1.77 million shares, which was above the 3-month average volume of 710.38 thousand shares.

Stock performance in the last previous six-month period – up 2.52%; and past twelve-month period – up 4.01%

After yesterday’s close, Welbilt’s market cap was at $2.78 billion.

Price to Earnings (P/E) ratio was at 31.42.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.

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