The US-based firm’s Flow Technology division said the proposed takeover of e&e Verfahrenstechnik GmbH had been made as part of its strategy to expand its food processing operations, which it views as a sector ripe for growth.
No financial details of the deal were available and SPX said the transaction was expected to be completed in the fourth quarter of 2011.
Coffee specialty
e&e, which develops in-house processing technology, specialises in supplying the instant coffee market. It focuses particularly on coffee preparation and freeze-drying of the coffee extract.
SPX said it planned to use the company’s expertise to enlarge its international market share of the instant coffee sector.
Based Warendorf, Germany, the firm employs around 40 workers and has an international distribution and sales network in China, France, India, Indonesia, Japan, the Philippines, Russia, Turkey and Vietnam.
Its core operations cover solid/liquid and liquid/liquid extraction, thermal liquid concentration, solvent rectification, and vacuum/freeze continuous belt or tray drying herbal extract, instant tea extract and Traditional Chinese Medicine (TCM), as well as coffee.
Food processing expansion
The move marks another step in SPX’s bid to expand its food processing footprint. The company has said it sees this area as a vital area to securing growth.
"Our acquisition of e&e will expand and enhance our food and beverage capabilities, and complement our 2010 acquisition of Anhydro, another leader in dry powder processing technologies and systems," said Don Canterna, segment president, SPX Flow Technology. "Additionally, e&e's freeze drying technologies and deep experience in creating instant coffee production facilities will give expanded presence in the global coffee market, particularly in Europe and Asia, where e&e has strong relationships."
Last year, SPX bought two Danish food processing technology outfits. Prior to the Anhydro acquisition in June 2010, it purchased Gerstenberg Schroder in February 2010.
Speaking then, the firm forecast the acquisition would boost their ability to provide turnkey, scalable food processing systems.
“Food manufacturers are increasingly seeking these kinds of systems to help optimise the production quality, efficiency, reliability and scale of their operations," said SPX chairman, president and CEO Christopher J. Kearney.