Marel has entered into an agreement to acquire MPS meat processing systems. The purchase price is €382 million ($415 million) on a debt and cash-free basis.

Marel has successfully completed the refinancing of its long-term funding. As previously announced, parallel to the acquisition of MPS, Marel entered into an approximately €670 million ($728 million) all senior long-term financing agreement. The all-senior loan facilities, which have now replaced the prior senior/junior structure, include a €343 million ($373 million) term loan, a $105 million term loan and a €225 million ($245 million) revolving credit facility.

ABN Amro, ING and Rabobank acted as book-runner mandated lead arrangers.

The loans mature in November of 2020. Current interest terms are EURIBOR/LIBOR plus a margin of 275 basis points which will vary in line with Marel’s leverage ratio at the end of each quarter.