Manitowoc Buys Enodis

By Staff -- Foodservice Equipment & Supplies, 4/16/2008 11:49:00 AM

The Manitowoc Co. announced it has reached an agreement for a recommended acquisition of Enodis plc in a transaction valued at approximately $2.1 billion. The transaction, which was unanimously approved by both companies’ boards of directors, is subject to court approval in the U.K., the approval of Enodis shareholders, as well as regulatory approvals in various jurisdictions.

Enodis reported revenues of $1.6 billion in the financial year ended Sept. 29, 2007. The Enodis product lines feature items on both the “cold” and “hot” sides of the industry. To date, Manitowoc Foodservice’s focus has been on “cold” equipment.

In a company press release, Manitowoc said it believes that the successful integration of the two businesses will result in improved growth prospects and the opportunity to deliver significant synergies. Management currently estimates that by 2010 the transaction will generate annual synergies of more than $60 million. Historical revenues for the combined companies for the most recently completed respective financial years exceeded $5.6 billion.