Marel, Iceland, announced plans to acquire Sulmaq, Brazil. The aim is to strengthen Marel’s position in Central and South America and ensure better access to a large and growing market of beef and pork.
Established in 1971, Sulmaq provides primary processing solutions to the pork and beef industries in Central and South America. Marel provides advanced processing systems and services to the poultry, meat and fish industries. Together, Marel and Sulmaq will be at the forefront of developing innovative, full-line solutions and equipment for meat processors worldwide.
Sulmaq employs around 400 employees, and includes hog slaughtering lines, cattle slaughtering lines, cutting and deboning, viscera processing and food logistics. It also develops and manufactures precision investment castings for various market segments.
“Sulmaq is a great addition to Marel’s portfolio,” says Arni Oddur Thordarson, chief executive officer of Marel. “Sulmaq has a very strong position in Central and South America, and has been on the forefront of providing primary meat solutions in the region. Marel has had great success in the poultry and fish markets in South America over the last two decades, and is now gearing up for further growth in the region. We are committed to investing in further growth and innovation to add value for our current and future customers. The acquisition is not expected to have a material impact on Marel's financial results in the short term. However, the long-term market potential is great in this 600 million people market for poultry, meat and fish processing, both for companies supplying for regional consumption and for export around the globe.”
"By the late 2000's, we had gained a premier position in the red meat segment in Central and South America. Today, we see a great opportunity in being a part of Marel, an innovative pioneer in our field,” adds Fernando Roos, director commercial, Sulmaq. “We really believe in the growth prospects and long-term outlook for us with Marel and the added value we will be able to offer our customers. Being a part of a larger organization also means that our employees will benefit from even more career opportunities."
The acquisition is expected to close in the third quarter of 2017. Sulmaq’s leaders, Roos, Henrique Roos and Julio Roos, will continue in their current positions at Sulmaq.
Sulmaq will be run as stand-alone business with support from Marel.