Enodis Board to Recommend Manitowoc’s $2.7 Billion Bid

By FES Staff -- Foodservice Equipment & Supplies, 7/1/2008 10:00:00 AM

In the latest chapter of a suspenseful story involving three of the foodservice equipment industry’s largest manufacturers, it appears as if Manitowoc has cleared a significant hurdle in its attempt to acquire Enodis plc. The Manitowoc Company announced it has been notified by the UK Takeover Panel that Enodis plc intends to recommend its $2.7 billion offer following completion of an auction process with Illinois Tool Works Inc.

Manitowoc’s bid includes the assumption of Enodis’ net debt, which is estimated at approximately $249 million as of March 29, 2008. The transaction is expected to be complete in fourth quarter of 2008 and remains subject to several approvals, including court approval in the U.K., Enodis shareholders, and regulatory agencies in various jurisdictions, according to a Manitowoc release. The Takeover Panel told Manitowoc that Illinois Tool Works will withdraw its offer to acquire Enodis subject only to the posting of the scheme document relating to Manitowoc’s bid, the release added. The amount of ITW’s increased bid in the auction process was not disclosed.

Enodis reported revenues of $1.7 billion for the 12 months ended March 29, 2008. The pending acquisition of Enodis will allow Manitowoc to enter the hot and retail segments of the foodservice industry. To date, Manitowoc’s focus has been on the cold side of the foodservice industry, including ice machines and refrigeration.

“The enhanced global business platform resulting from the combination is expected to generate many benefits through deeper customer relationships, a more robust R&D process, and operating synergies,” said Glen E. Tellock, Manitowoc president and chief executive officer.

Manitowoc made its initial offer to purchase Enodis in April. ITW entered the picture with an offer of its own in May. As a result, Manitowoc submitted a counter offer in late May and that subsequently led to the auction process, which took place on June 30.