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Investing.com -- Shares of Munters edged up 1% following the announcement that the company will sell its FoodTech equipment offering to Grain & Protein Technologies for EUR 97.5 million. This transaction is a part of Munters’ strategic realignment to concentrate on digital growth opportunities.
The company, which began a strategic review in the second quarter of 2023, initiated the divestment process in the second quarter of 2024 to streamline operations. The FoodTech equipment offering, accounting for 12% of group sales, will be classified as discontinued operations in the first quarter of 2025.
Despite an anticipated capital loss of approximately SEK 0.5 billion from the sale, the deal is expected to close in the first half of 2025, pending regulatory approvals and customary closing conditions.
Analysts have reacted positively to the news. A comment from Jefferies stated, "At first glance, we view the divestment favorably on the basis it should enhance group EBITA margin by ~0.5pp. The move also enables the co to reinvest the proceeds into high-margin, high-growth digital initiatives in FoodTech and other areas, incl Data Center Technologies."
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