GEA-Group
German company Mutares SE & Co. KGaA is the buyer of the two companies. Credit: GEA Group.

Technology supplier GEA has decided to sell its barn equipment and milk cooling technology businesses to private equity company firm Mutares SE & Co KGaA.

The move to divest the businesses, which are part of its Farm Technologies division, is part of the company’s stated strategic portfolio optimisation strategy.

Milk cooling tanks manufacturer GEA Farm Technologies Japy and barn equipment supplier Royal De Boer Stalinrichtingen are the two companies being divested.

Neither of the companies disclosed the financial details of the transaction.

The transaction, which is subject to the merger control approval, should conclude in December.

GEA Group CEO Stefan Klebert said: “We are pleased that Mutares SE & Co. KGaA 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.”

GEA said that the sale will enable its Farm Technologies division to ‘focus on automation and digitalisation’ of milking installations as well as processes.

It will also allow GEA’s division to focus on products that ensure milk quality and improve cow health.

GEA added that the division will continue to offer different kinds of manure handling products for the North American market.

The technology supplier will retain access to the product portfolio of both divested companies even after the completion of the transaction.

In May last year, GEA built a freeze-dried instant coffee plant for Tata Coffee Vietnam Company.

In July 2017, the company secured a contract to construct a new milk production facility for Indian company AmulFed Dairy, a unit of Gujarat Co-operative Milk Marketing Federation (GCMMF).