The sale of Frontmatec to KKR-backed Bettcher Industries follows a successful growth and consolidation journey for Frontmatec, initiated by Axcel in 2016 with the merger of five companies within automation in the food industry and other hygiene-sensitive industries.
Frontmatec is renowned globally for its high-quality automated equipment, robotics, vision systems, instruments, and software solutions for the entire value chain of the red meat industry. With operations in Europe, the Americas, and Asia, Frontmatec serves more than 1.500 customers from local industrial players to large global food processors.
Frontmatec is the result of a merger between five companies and five subsequent acquisitions to strengthen both its technology platform and geographic coverage. Since Axcel established the group in 2016, the company has doubled profitability, accelerated organic growth, and completed several successful acquisitions to strengthen its technology platform and to gain access to new markets.
“Frontmatec is a world leader in automation within the food industry, meeting the accelerating global demand for improved yield in production and food quality. I would like to thank the Axcel team, who have been instrumental in developing Frontmatec into the leading provider we are today, and not least all of our employees for their tremendous efforts. We look forward to continuing to develop and grow Frontmatec together with Bettcher and KKR," said Allan Kristensen, CEO of Frontmatec.
“Frontmatec has built a leading brand and position by enabling customers to continuously improve the productivity and safety of their workforce. The company’s capabilities in automation and global presence make it a superb fit for the Bettcher platform, and we are excited to work with Allan and his team to extend our collective innovation leadership,” said Tim Swanson, CEO of Bettcher Industries.
Christoffer Müller, partner in Axcel and investment lead for Frontmatec, commented: “We are very proud to have been part of creating an industry champion together with the entire Frontmatec team. The company has become a highly profitable and an efficient platform for further growth, and we are pleased with the outcome of the sale and to see Frontmatec continue its journey with Bettcher and KKR, who is a very experienced investor. We wish them all the best in the future.”
Frontmatec is the ninth company to be sold by Axcel’s fourth fund, launched in 2010. The transaction is expected to be completed within three to six months.
Baird served as the exclusive financial advisor to Frontmatec and Axcel, while Bech Bruun served as legal counsel.