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Manitowoc lands Enodis two years after approach
Kitchen equipment firm Enodis yesterday gave its backing to a takeover by the same American firm it snubbed two years ago.
Enodis, which started life as a food merchant in the mid-19th century, announced an agreement with Manitowoc worth 260p a share, valuing the London-listed business at 948m.
Wisconsin-based Manitowoc, which specialises in manufacturing refrigerators and ice-making equipment, was spurned by Enodis in August 2006, when an offer in the region of 210p a share was rejected on value grounds.
Enodis is a former owner of retail kitchens and joinery business Magnet, but now concentrates on selling specialist equipment to the likes of Starbucks and McDonald's.
It employs more than 6,000 people in eight countries, including 400 people at three sites in the UK.
The company's three UK operating divisions are: Microwave business Merrychef, based at Aldershot; Scotsman Beverage Systems at Halesowen; and Enodis UK Food Service, which is based near Sheffield and dates back more than 150 years.
Yesterday's agreement values Enodis at a premium of 82 per cent to its share price prior to Manitowoc disclosing its interest in the UK company.
Enodis chairman Peter Brooks said: "The board is confident in the company's future.
"Nevertheless, it recognises that the cash offer from Manitowoc represents an opportunity for shareholders to receive cash value for their shares, especially in the context of prevailing uncertain global financial markets."
There remains a possibility that the deal could be trumped by rival bidders, including Middleby and Aga Food Service, both of whom approached Enodis in 2006.
Enodis has its operational headquarters in Tampa, Florida and generates around 70 per cent of its revenues from North America. Other brands include Frymaster, Cleveland and Kysor Panel Systems.
Manitowoc said yesterday the proposed deal created one of the world's leading foodservice businesses and would allow Manitowoc to enter two major new market segments, hot foodservice and food retail equipment.
Yesterday's offer of 260p a share includes the 2p dividend proposed by Enodis at the time of its year-end results.
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Thursday 24 May 2012
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