Enodis Announces Sale of Vent Master, Strategic Alliance with Halton
Feb 8, 2005
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Enodis plc, a leading provider of solutions to the food equipment industry, has signed an agreement to sell its Vent Master subsidiary to The Halton Group effective March 4, 2005 for U.S. $6 million (approx. 3.2 million pounds Sterling). Vent Master is a high-end commercial kitchen ventilation and air purification business, with operations in North America and the UK.
In the year ended October 2, 2004 Vent Master had a net operating loss of $0.7 million (approx. 0.4 million pounds) on revenues of $22.6 million (approx. 12.7 million pounds). Net assets at October 2, 2004 were $2.9 million (approx. 1.6 million pounds) and the exceptional loss on disposal will be approximately $12.5 million (approx. 6.6 million pounds) due to previously written off goodwill. Vent Master has a total of 125 employees (55 in the UK). The sale includes the Vent Master and Air Tech Brands.
Under the terms of the agreement, Garland Commercial Ranges Ltd., a subsidiary of Enodis, will continue to represent Vent Master as its sales arm in Canada, and the U.S. sales representatives will continue selling Vent Master products.
Enodis plc and The Halton Group will also enter into a strategic alliance, which will include supply and development agreements and commercial co-operation.
The Halton Group is a global supplier of indoor climate products and systems. The product range of this family company covers indoor climate solutions for commercial and public buildings, industry, hotels, foodservice facilities, and marine. Halton Group and its subsidiaries operate in 13 countries in Europe, North America, and Asia. Halton has manufacturing facilities and R&D centers in Finland, France, Hungary, Malaysia, Norway, and the U.S.
"This transaction is consistent with our strategy to focus on our core operations and allows us to commit further resources to the opportunities we see in the global foodservice marketplace," comments Dave McCulloch, Enodis CEO. "Vent Master, which currently represents less than three percent of overall Enodis sales, is an excellent business with developing technologies, in particular its Reactocell(R) Ultra Violet systems. We believe that The Halton Group is well positioned to help this business realize its full potential."
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