Munters, a global leader in climate solutions for mission-critical processes, has officially signed an agreement to divest its FoodTech Equipment business to Grain & Protein Technologies (GPT), a company owned by American Industrial Partners (AIP). The deal, valued at 97.5 million euros (approximately 1.1 billion Swedish kronor) on a cash and debt-free basis, marks a significant shift in Munters’ strategic direction.
This divestment aligns with Munters’ long-term strategy of focusing on specific high-growth segments within each of its business areas. In the FoodTech sector, the company has been shifting its emphasis toward digital growth, leveraging software, controllers, sensors, and Internet of Things (IoT) technologies. With this move, Munters will now fully integrate its digital solutions into the FoodTech business area, allowing for greater innovation and market competitiveness. The sale of the Equipment business is a key step in streamlining operations and honing its expertise in digital solutions.
“The sale of the Equipment business offering is an important move towards our goal of enhancing our focus on FoodTech digital solutions,” said Klas Forsström, President and CEO of Munters. “The equipment business has a distinguished legacy in engineering, strong leadership, and committed staff. I am certain that GPT will be a very good owner for them in the next stage of their development.”
The transaction includes the divestment of five production facilities located in Italy, Germany, China, and the United States, in addition to one assembly hub in South Africa and three dedicated sales offices. In total, approximately 400 employees spread across Europe, North America, the Middle East, and Southeast Asia will transition to GPT as part of the deal. These employees have been instrumental in the development, manufacturing, and sale of ventilation equipment for the livestock farming and greenhouse sectors.
The FoodTech Equipment offering being divested comprises fans, ventilation, and cooling systems, as well as the production of CELdek evaporative cooling pads. In 2024, this division generated annual net sales of 1,925 million Swedish kronor (MSEK) and an adjusted EBITA of MSEK 226. The equipment business has long been recognized for its high-quality engineering and product innovation, playing a vital role in improving climate control solutions for agricultural and food production environments.
However, it is important to note that the production and sales of CELdek in the Americas region will not be included in the divestment. Instead, this segment will be fully integrated into Munters’ AirTech business area. The integration of CELdek into AirTech would have contributed approximately MSEK 200 in annual net sales based on 2024 figures for the AirTech Americas region. This decision reflects Munters’ strategic intent to consolidate its cooling technology offerings within AirTech while focusing on digital innovation within FoodTech.
As part of the financial reporting process, the FoodTech Equipment business will be classified as a discontinued operation starting in the first quarter of 2025. The divestment is expected to result in a capital loss of approximately 0.5 billion Swedish kronor (BSEK). The transaction is anticipated to be finalized within the first half of 2025, pending regulatory approvals and other customary closing conditions.
Grain & Protein Technologies (GPT), the acquiring company, is a well-established player in the industrial sector, particularly within agricultural and protein production technologies. GPT’s parent company, American Industrial Partners (AIP), is a US-based private equity firm specializing in investments in industrial businesses that serve both domestic and global markets. AIP’s expertise in fostering industrial growth and innovation positions GPT as a strong new owner for Munters’ FoodTech Equipment business, ensuring a smooth transition and continued development of the business segment.
FoodTech Munters Announces Agreement to Divest FoodTech Equipment Division
Munters’ decision to divest its equipment division underscores its commitment to long-term strategic growth and value creation. The company’s increased focus on digital solutions aligns with industry trends that emphasize automation, data-driven decision-making, and efficiency improvements in agricultural and food production environments. By narrowing its focus, Munters aims to accelerate its development of innovative digital solutions that enhance sustainability and operational efficiency in food technology.
The sale also reflects the evolving landscape of the agriculture and food technology industries, where digital transformation is becoming a key driver of growth. With increasing demands for smart farming solutions, climate-controlled environments, and precision agriculture, companies are prioritizing investments in advanced technology to meet these challenges. Munters’ shift towards digitalization positions it as a frontrunner in addressing the evolving needs of the agricultural sector.
For employees transitioning to GPT, the acquisition presents new opportunities for career growth and development under a specialized ownership structure. Given GPT’s focus on agricultural and protein production technologies, the incoming team will benefit from synergies that drive innovation and market expansion. Moreover, the equipment business’s legacy of engineering excellence and customer-centric solutions will continue under GPT’s stewardship, ensuring continuity for existing clients and partners.
From a financial perspective, the divestment provides Munters with additional capital to reinvest in its core areas of expertise. The proceeds from the sale can be directed towards research and development initiatives, further expanding its digital product portfolio and reinforcing its market leadership in climate solutions for food production and agriculture. Additionally, the capital reallocation aligns with Munters’ broader corporate strategy of optimizing its portfolio and enhancing shareholder value through targeted investments.
Looking ahead, Munters will continue to explore new opportunities for growth within its redefined FoodTech business area. The integration of software, IoT, and digital solutions is expected to drive higher efficiency and sustainability in food production, ultimately benefiting customers seeking cutting-edge climate control solutions. The company remains committed to delivering advanced technology that meets the dynamic needs of the agricultural industry while maintaining its leadership position in climate solutions.
In conclusion, the agreement between Munters and GPT represents a pivotal moment in Munters’ transformation strategy. By divesting the FoodTech Equipment business, Munters is sharpening its focus on digital innovation while ensuring that its former equipment division finds a strong new home with GPT. The transition is expected to bring long-term benefits to all stakeholders, including employees, customers, and investors. As the deal moves toward completion, Munters remains dedicated to advancing its digital FoodTech solutions and reinforcing its position as a global leader in climate control technology for the food and agriculture sectors.
