Manitowoc said today it plans to acquire Enodis plc for approximately $2.1 billion. The acquisition will make Manitowoc one of the global leaders in commercial foodservice appliances.
The agreement includes Manitowoc's assumption of Enodis' net debt (approximately $207 million as of Sep. 29, 2007). Manitowoc and Enodis boards both unanimously approved the transaction.
The Manitowoc Company, Inc. (Manitowoc, WI, U.S.) has long been a successful player in the cold side of commercial foodservice: ice cube machines, ice/beverage dispensers, and commercial refrigeration equipment. It has also been successful in its two other major businesses: construction cranes and shipbuilding/ship repair.
The acquisition of Enodis will considerable broaden Manitowoc's commercial appliance offering, including the addition of several cold-side brands that were formerly Manitowoc competitors.
Enodis brands include Cleveland, Convotherm, Delfield, Frymaster, Garland, Icematic, Ice-o-matic, Jackson, Kysor//Warren, Kysor Panel Systems, Lincoln, Merrychef, Scotsman, and Scotsman Beverage Systems. It manufactures foodservice cooking, ovens, storage, preparation, holding, warewashing, ice machine, refrigeration, and beverage equipment for restaurants. It manufactures refrigeration systems, refrigerated display cases, and walk-in cold storage rooms for supermarkets and other retailers. It has production in North America, the United Kingdom, Western Europe, and Asia. It is listed in London and operationally headquartered in Tampa, FL, U.S.
Glen E. Tellock, Manitowoc president and CEO, wants to take the company's successful lifting industry growth strategy and apply it to commercial foodservice equipment. "The same elements are in place for this strategy to succeed again - industry leading brands, a global footprint to meet the specific needs of a global customer base, a commitment to technology, new product development, and world-class aftermarket services, all supported by a team of the industry's most talented people," Tellock said.
Manitowoc believes integrating Manitowoc and Enodis will provide improved growth prospects and create synergies that are estimated to top $60 million by 2010.
"We believe the expanded global footprint of the combined businesses creates an outstanding growth platform for Manitowoc Foodservice," said Michael Kachmer, president of Manitowoc Foodservice. "With the world's largest foodservice companies growing at rates well in excess of the overall industry, we should be well-positioned to partner with our customers in creating modern, efficient kitchens that deliver the dining choices that consumers want."
The transaction still needs Enodis shareholder approval and regulatory approvals, and is expected to close by the fourth quarter of 2008.
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