ITW to buy Enodis for $2.3 billion
Industrial Distribution staff -- Industrial Distribution, 5/8/2008 6:11:00 AM
Illinois Tool Works Inc. agreed to acquire British food equipment manufacturer Enodis plc in a $2.3 billion deal that could ignite a bidding war between ITW and the Manitowoc Co.The deal, in which the Glenview, Ill.-based diversified manufacturer would pay $2.1 billion in cash and assume $210 million in debt, trumps an earlier offer from Manitowoc, a cranes, foodservice equipment and marine products manufacturer based in Manitowoc, Wis.
Enodis, which posted sales of $1.6 billion last year and employs about 6,800 workers, supplies fryer systems to restaurants including fast-food giant McDonald's Corp. The company accepted Manitowoc’s $2.1 billion bid April 14, but rescinded that agreement in favor of the ITW offer.
In a statement released after the ITW deal was announced, Manitowoc said it is “considering its position and will make a further announcement in due course.”
ITW chairman and CEO David Speer said his company’s offer represents significant premiums over both the Manitowoc bid and Enodis’ share price.
“We strongly believe this cash offer brings significant value to Enodis' shareholders,” Speer said. “The ITW offer represents a 9 percent premium to a competitive offer and a 56 percent premium to Enodis' average closing price for the 12 months ending April 8, 2008.
“As we have done in past acquisitions, we intend to operate Enodis as a stand alone business group within the food equipment segment. We also recognize the importance of Enodis' workforce to our future success and look forward to welcoming them into ITW's food equipment group.”
Talkback
Related Content
Sponsored Links
View All Blogs
