GEA has signed an agreement to sell its barn equipment and milk cooling technology businesses to private equity firm Mutares for an undisclosed sum.
Until now, the companies have been part of the group’s farm technologies divisions. They include GEA Farm Technologies Japy, a French manufacturer of milk cooling tanks, and Royal De Boer Stalinrichtingen, a European supplier of barn equipment based in the Netherlands.
GEA says the divestiture is in line with its strategic portfolio optimisation and will enable its farm technologies division to focus on automation and digitalisation of milking installations and processes, as well as on products that ensure milk quality and improve cow health.
Together, the two companies reportedly generated revenues of approximately €50 million in 2019.
Following the transaction, GEA will retain access to the product portfolio of both divested companies to continue serving individual customer needs.
“We are pleased that Mutares will become the new owner of both companies, as Mutares is in a position to develop each company’s business potential to the best possible extent,” said Stefan Klebert, CEO of GEA.
The transaction, which is subject to merger control approval, is expected to close in December this year.