NEW PORT RICHEY, Fla. -- Foodservice equipment maker Welbilt Inc. will enter the hot-dispensed-beverage category through acqusition: It has entered into a definitive agreement to acquire coffee-machine manufacturer Crem International. The approximately $224 million deal is set to close in the second quarter.
Welbilt, formerly Manitowoc Foodservice Inc., will acquire 100% of the shares of Sweden-based Crem International’s parent company, Avaj International Holding AB, according to the agreement. Crem’s manufacturing sites in Sweden, Spain and China develop coffee machines under the Coffee Queen, Expobar and Spengler brands. By 2020, Welbilt expects run-rate synergies resulting from the acquisition to grow to approximately $10 million, according to a news release.
“Crem expands our full-line of commercial foodservice equipment coverage by adding the fast-growing hot-coffee category to our portfolio, which gives Welbilt the broadest portfolio of hot- and cold-beverage equipment of any company in the market,” said Hubertus Muehlhaeuser, Welbilt’s president and CEO.
With a strategic position in the European and Asian markets, Crem also presents Welbilt with the opportunity to cross-sell its products. Welbilt is purchasing Crem from majority stakeholders Stockholm-based Priveq investment Fund IV LP and SEB Venture Capital.
Welbilt is based in New Port Richey, Fla., and operates 17 manufacturing facilities in the Americas, Europe and Asia. The company sells through a network of 3,500 distributors and dealers in 100 countries.