The Manitowoc Co., Inc., has completed an acquisition offer for major foodservice equipment manufacturer Enodis plc (LSE: ENO) in a transaction valued at around $2.1 billion, including the assumption of approximately $207 in debt. The transaction is subject to court approval in the U.K., the approval of Enodis shareholders, as well as regulatory approvals in various jurisdictions.
Headquartered in Tampa, FL, Enodis in the U.S. markets a series of prominent equipment brands including Cleveland, Convotherm, Dean, Delfield, Frymaster, Garland, KE-O-Matic, Jackson, Lincoln, Merco-Savory, Merrychef, Scotsman, US Range and Varimixer. Its revenues in its most recent fiscal year were around $1.6 billion.
Enodis is regarded as one of the world's leading suppliers of both “hot” and “cold” foodservice equipment, while Manitowoc Foodservice's focus has been only on “cold.” Hence, a combination with Enodis will allow Manitowoc to enter two major new market segments, hot foodservice and food retail equipment, as well as expand its cold-side businesses.
“We have long recognized the value that a combination of the foodservice businesses of Enodis and Manitowoc would create,” says Manitowoc President/CEO Glen Tellock. “We believe the strategic benefits of the combination are substantial, and we are pleased to have reached an agreement for this transforming acquisition.”
“We believe the expanded global footprint of the combined businesses creates an outstanding growth platform for Manitowoc Foodservice,” says 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.”