GLENVIEW, Ill. -- Illinois Tool Works Inc. (ITW) said it has reached an agreement with the Enodis plc board on the terms of a recommended offer $2.1 billion cash and assumption of debt to purchase the commercial foodservice equipment maker. The deal follows the announcement in mid-April that equipment manufacturer The Manitowoc Co. Inc. had reached an agreement to buy Enodis for approximately $2.1 billion, including the assumption of Enodis' debt.
(Click here to view previous CSP Daily News coverage of the announced deal.)
The ITW deal is subject to court approval in the U.K., the approval of Enodis shareholders and traditional regulatory approvals in various jurisdictions. ITW expects the transaction to close in August 2008.
Enodis, Tampa, Fla., reported revenues of approximately $1.6 billion for fiscal year ended Sept. 30, 2007. The company's product line includes equipment for fast-food restaurants, institutions, supermarkets and convenience stores. Major products encompass cooking equipment, ice and beverage dispensing equipment and standalone refrigeration as well as refrigerated display cases. Enodis' brand names include Frymaster, Garland, Lincoln, Scotsman, Convotherm and Kysor Warren.
ITW's existing food equipment businesses had revenues of $1.9 billion in 2007 and feature products primarily for casual dining restaurants, institutions and supermarkets. Key products include warewashing equipment, cooking and food processing equipment, refrigeration equipment and ventilation and pollution control systems. ITW food equipment's brand names include Hobart, Vulcan, Traulsen, Avery Berkel and Bonnet. With more than 50 businesses in 23 countries, food equipment represented 12% of ITW's total company revenues in 2007.
"We believe that the combination of ITW Food Equipment and Enodis will create an expanded global food equipment platform with very complementary strategic, operational and geographical growth positions," said David B. Speer, chairman and CEO of Glenview, Ill.-based ITW. "The collective businesses will have a significantly enhanced product portfolio in addition to greater scale to compete even more effectively and successfully in the global food equipment industry."
He added, "As we have done in past acquisitions, we intend to operate Enodis as a standalone business group within the food equipment segment."
Manitowoc, Wis.-based Manitowoc Co. said in a statement that it "notes the announcement made this morning by FNI Limited, a wholly owned subsidiary of Illinois Tool Works Inc., on the recommended cash acquisition of Enodis plc. Manitowoc is considering its position and will make a further announcement in due course."
The company, along with being a major provider of construction lifting equipment and shipbuilding services, is also a major manufacturer of ice-cube machines, ice/beverage dispensers, and commercial refrigeration equipment, the company offers the broadest line of cold-focused equipment in the foodservice industry.
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