Food service firm Manitowoc buys Enodis for £948m

14-04-2008

Food service firm Manitowoc buys Enodis for £948m
Food service company Manitowoc has agreed to buy UK catering supplier Enodis for £948 million.

The £2.58 per share offer is 82 per cent higher than Enodis's closing share price on April 8th.

Investors will receive a 2p dividend from the takeover, Manitowoc said. The purchase will allow Manitowoc, the biggest ice-machine maker in the US, to enter into the 'hot' foods market as well as expand its presence in the 'cold' business.

Glen Tellock, Manitowoc president and chief executive officer, said: "We believe the strategic benefits of the combination are substantial, and we are pleased to have reached an agreement for this transforming acquisition."

Enodis supplies deep-fat fryers to McDonald's and also provides primary cooking, ovens, storage, ice machines, refrigeration and beverage equipment to restaurants worldwide.

Wisconsin-based Manitowoc primarily provides cranes, but also makes ice machines and provides refrigeration.

The board of Manitowoc estimates that by 2010 the transaction will generate annual synergies of more than $60 million (£30 million).

The deal is expected to close in the fourth quarter of 2008. By 13:25 BST on Monday, Enodis's share price has risen 11 per cent to £2.43, still well below the offer price.

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