Manitowoc Wins $2.7 Billion Bid to Buy Enodis
The final $2.7 billion offer by Manitowoc Co., the last in a string of bids to acquire the multi-national company, was approved by an Enodis panel. The deal, expected to close in the fourth quarter of this year, still requires considerable regulatory approval and consent from Enodis shareholders.
The merger includes the assumption of Enodis' net debt of about $249 million.
Manitowoc outbid Glenview, Ill.-based Illinois Tool Works, which withdrew from the auction after counter bidding an unspecified amount, according to a statement from Manitowoc, the largest ice machine maker in the U.S., among other product lines.
The transaction will allow Manitowoc to enter the hot foodservice and retail foodservice equipment market, since Enodis has product lines in both segments.
The takeover is expected to result in annual synergies of more than $80 million by 2010, with historical revenues for the combined companies for the most recently completed financial year exceeding $5.6 billion, according to company statements.
"Throughout this process, we reaffirmed our belief in the transforming opportunities that Enodis provides," said Glen Tellock, CEO of Manitowoc. "Even at the higher price, we believe the strategic benefits of the combination are significant while remaining consistent with the strict financial disciplines that we have adhered to for all of our acquisitions."
Enodis is a full-line foodservice equipment manufacturer with 6,000 employees. The company's U.S. operations are based in New Port Richey, Fla.
Manitowoc currently controls about 40 percent of the $700 million U.S. ice-machine market; combined with Enodis' Scotsman and Ice-O-Matic brands, that share would increase to approximately 70 percent, according to reports.