JBT Divests AeroTech Business To Oshkosh For $800M

John Bean Technologies Corp JBT has entered into a definitive agreement to sell its AeroTech business to Oshkosh Corporation OSK in an all-cash transaction valued at $800 million.
JBT expects to use the net proceeds for debt repayment and continued disciplined FoodTech inorganic growth.
"As we signaled during our Investor Day in March of 2022, the divestiture of AeroTech supports our strategy to become a pure-play food and beverage solutions provider," said JBT President and CEO Brian Deck.
"The transformation to a pure-play company enables a focused path to grow and enhance our leading FoodTech franchise, which operates in highly resilient markets, provides an attractive growth outlook and expanding margin profile, and generates strong free cash flow."
In 2Q, JBT expects to classify AeroTech as held for sale will have a dilutive impact to 2023 GAAP EPS of $0.33 and adjusted EPS of $0.40.
The transaction is anticipated to close in the third quarter of 2023.
Upon close, AeroTech will become part of the Oshkosh Vocational segment. OSK expects the acquisition to be accretive to growth and margins and deliver solid recurring revenue from its aftermarket parts and services offerings.
Oshkosh expects to fund the deal through a combination of cash on hand and capacity under its current revolver. OSK held cash and equivalents of $538.7 million as of March 31, 2023.
Price Action: JBT shares closed higher by 2.75% at $105.67 on Friday.