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Apr-14-2008Manitowoc Agrees to Buy Enodis for $1.9B(topic overview)
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Manitowoc Company, Inc. said on Monday that it has agreed to acquire the British food equipment maker Enodis plc for the amount of 2.1 billion dollars that also includes Enodis' net debt of 207 million dollars. Both companies' Boards of Directors have approved the deal that offers Enodis 258 pence per share and which is expected to be completed in the fourth quarter of the current fiscal year, after it would be approved by a UK court. [1] The Manitowoc Company, Inc. (NYSE: MTW) announced today that agreement has been reached on the terms of a recommended acquisition of Enodis plc (LSE: ENO) in a transaction valued at approximately $2.1 billion, including the assumption of Enodis' net debt (approximately $207 million as of September 29, 2007). The transaction, which was unanimously approved by both companies' Boards of Directors, provides for a cash payment of 258 pence per Enodis share.[2]
Manitowoc said that that cost and revenue synergies from the deal are expected to exceed $60 million a year by 2010. Manitowoc, which said the buyout is also expected to be earnings per share accretive in 2009, also reaffirmed its 2008 earnings outlook of $3.20 to $3.40 per share. The acquisition is subject to approval from U.S. and European regulators and Manitowoc said it has agreed to take all the steps necessary to meet such clearance by Oct. 11. If those conditions have not been satisfied by that date, Manitowoc will pay Enodis a termination fee of $50 million. The companies said they plan to hold meetings for shareholders to vote on the deal in early June.[3] Manitowoc chairman Terry Growcock said in a statement: 'The combination of Manitowoc and Enodis' businesses will create one of the leading foodservice businesses globally. 'This acquisition continues our strategy of dynamic, earnings-based growth which drives value for Manitowoc shareholders.' The price represents a 82.3 percent premium on Enodis' closing share price on April 8, the day before the company announced it had been approached by Manitowoc. Manitowoc said it expects the acquisition, which is being made through its subsidiary MTW County Limited, to be earnings enhancing in 2009 and to produce annual synergies, excluding one-off costs, of not less than $60 million by 2010. Enodis previously opened its books to Manitowic in August 2006, after a three-month long bidding battle between the Wisconsin-based company and another U.S. group Middleby Corp. (NASDAQ:MIDD) A deal, which would have been pitched at not less than 220 pence a share -- a condition set by Enodis before it opened its books, foundered when the groups could not agree regulatory issues.[4] Enodis was approached by Aga Foodservice Group Plc. (OOTC:AGFDF) later in the same year, but Enodis rebuffed the British group's 197 pence a share offer, saying it undervalued the company. Aga later sold its foodservice arm to privately owned Italian company Ali. This time around, Manitowoc said it has agreed to take all steps necessary to achieve clearance from the EC and U.S. antitrust authorities by October 11, 2008, and it will pay a termination fee of $50 million if the regulatory conditions have not been satisfied by that date. Shares in Enodis were higher after the offer, with analysts saying they were confident the deal would go ahead.[4]
LONDON -- U.K. food equipment manufacturer Enodis PLC Monday agreed to be acquired by Manitowoc Co. in a deal valued at £948 million, or $1.87 billion, that allows the U.S. company to expand its food-service unit into new market segments. The acquisition of Enodis, which supplies fryer systems to restaurants, including fast-food giant McDonald's Corp., will give Manitowoc footholds in the hot-food service and food retail equipment sectors and increase its presence in ice, refrigeration and beverage.[5] The firm currently expects the deal to generate annual synergies of more than $60 million by 2010. It further noted that the merger of Enodis will allow Manitowoc to enter two major new market divisions, hot foodservice and food retail equipment, as well as expand its cold-side businesses.[6] The transaction will allow Manitowoc to enter two major new market segments, hot foodservice and food retail equipment, since until now it was focusing on cold equipment. Manitowoc's representatives said that the deal would create a better growth opportunity, as they estimate that by 2010 the merger would generate annual synergies of over 60 million dollars.[1]
The Manitowoc Company said Monday the acquisition of Enodis, of London, will allow it to enter two new market segments, hot foodservice and food retail equipment.[7] The company says a combination with Enodis will allow Manitowoc to enter two major new market segments, hot foodservice and food retail equipment, as well as expand its cold-side businesses.[8]
The U.S. company said buying Enodis, a supplier to companies such as McDonalds Corp. (NYSE:MCD), would allow it to enter the hot foodservice and food retail equipment markets, and would position it as a global leader in both hot and cold foodservice.[4]
Enodis chairman Peter Brooks said: "The board is confident in the company's future. "Nevertheless, it recognises that the cash offer from Manitowoc represents an opportunity for shareholders to receive cash value for their shares, especially in the context of prevailing uncertain global financial markets." There remains a possibility that the deal could be trumped by rival bidders, including Middleby and Aga Food Service, both of whom approached Enodis in 2006. Enodis has its operational headquarters in Tampa, Florida and generates around 70% of its revenues from North America. Other brands include Frymaster, Cleveland and Kysor Panel Systems.[9] The Manitowoc Co. Inc. said its $2.1 billion purchase of Enodis plc and its operational headquarters in New Port Richey would establish Manitowoc as a global leader in commercial food service equipment. The boards of directors of both Manitowoc and Enodis have agreed to the deal, which is expected to close in the fourth quarter, according to a release.[10] As part of the deal, Manitowoc will assume about $207 million in net debt from Enodis. Enodis provides food service equipment for both the "cold" and "hot" sides of the industry, while Manitowoc has focused on "cold" equipment.[10] The deal would add hot food and food retail equipment to Manitowoc's offerings to the food service industry. Enodis produces commercial food and beverage equipment such as fryers, grills and refrigerators that are sold under the Cleveland, Frymaster, Icematic, Ice-o-matic, Merrychef and Scotsman brand names.[11] The 948 million pound deal will give Manitowoc, the biggest ice machine maker in the United States, entry into two major new market segments — hot food service and food retail equipment.[3] A combination will allow Manitowoc to enter two new market segments, hot food service and food retail equipment, as well as expand its cold-side business, the release said.[10]
Manitowoc-based Manitowoc Co., which also produces cranes, lifting equipment and commercial ships, said the merging of the the two food service operations will result in annual savings of more than $60 million by 2010. Combined, the food service business had $5.6 billion in revenue in their most recent fiscal years. J.P. Morgan Securities Inc. is acting as financial adviser and both Foley & Lardner and Linklaters LLP are acting as legal advisers to Manitowoc in the transaction.[11] Enodis, a commercial foodservice equipment provider based in Tampa, Florida, reported revenues of GBP 0.8 billion, or US$1.6 billion, for the financial year ended September 29, 2007. Looking ahead to the fiscal year 2008, Manitowoc reiterated its previous earnings guidance of $3.20-$3.40 per share for its standalone business.[6] Listed in London and operationally headquartered in Tampa, Florida, Enodis, a global leader in commercial foodservice equipment with a variety of premier brands, reported revenues of 0.8 billion GBP (US $1.6 billion) in the financial year ended September 29, 2007.[12]
The Manitowoc Co. Inc. said Monday that it has agreed to buy Enodis plc, a global food and beverage equipment manufacturer, in a transaction valued at $2.1 billion.[11] LONDON (AP) — U.S.-based heavy equipment maker Manitowoc Company Inc. will buy British food service equipment supplier Enodis PLC for $1.9 billion, the companies said Monday.[3] MANITOWOC, Wis. (AP) - The Manitowoc Company is acquiring commercial food equipment manufacturer Enodis in a $2 billion deal.[7]
The purchase will quadruple Manitowoc's annual food- equipment sales to more than $2 billion, placing it ahead of current industry leader Illinois Tool Works Inc. The U.S. company dropped an approach for Enodis in 2006 because of antitrust concerns about overlap in areas including ice machines.[13] The acquisition would quadruple Manitowoc's annual food-equipment sales to more than $2bn, placing it ahead of Illinois Tool Works, the current U.S. industry leader. It would also give Manitowoc valuable customers in Europe and Asia. The deal would also enable Manitowoc to reduce its dependence on cranes, which account for 80 per cent of its sales, at a time when the construction market in the U.S. is slowing.[14] The acquisition would quadruple Manitowoc's annual food- equipment sales to more than $2 billion, placing it ahead of current industry leader Illinois Tool Works Inc. The British supplier of chiller cabinets to McDonald's Corp. also would add customers in Europe and Asia.[15]
"The acquisition of Enodis provides the opportunity to replicate the tremendous growth strategy that we employed in the lifting industry," Mr. Tellock added. "The same elements are in place for this strategy to succeed again - industry leading brands, a global footprint to meet the specific needs of a global customer base, a commitment to technology, new product development and world-class aftermarket services, all supported by a team of the industry's most talented people." 2008 EARNINGS OUTLOOK Manitowoc believes the acquisition of Enodis is consistent with the company's strategic and financial imperatives of profitable growth and value creation, driven by innovation, customer and people focus, and excellence in operations and services.[12] In 2002, the company's Crane segment had pro forma revenues of less than $1 billion. Since that time, Manitowoc has enhanced its service offering to include an industry-leading aftermarket support network, has introduced more than 100 new products, and now operates manufacturing and service facilities in more than 20 countries to serve its global customers and their specific needs. In 2007, the company's Crane segment had revenues totaling more than $3 billion.[12]
ABOUT MANITOWOC The Manitowoc Company, Inc. is one of the world's largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks.[12] Manitowoc provides lifting equipment for the construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. It manufactures ice-cube machines, ice/beverage dispensers, and commercial refrigeration equipment for the foodservice industry.[6] "The combination of Manitowoc and Enodis' businesses will create one of the leading foodservice businesses globally," Manitowoc Chairman Terry Growcock said in a statement. The purchase will allow Manitowoc to provide an "enlarged product range and a more comprehensive suite of services across the hot and cold foodservice industry," he added.[3] Listed in London and operationally headquartered in Tampa, Florida, Enodis is a supplier of foodservice equipment, with products on the "cold" and "hot" sides of the industry.[8]
The focus of Manitowoc Foodservice has, so far, been on "cold" equipment. The transaction has been approved by directors at both companies. It's subject to consent from Enodis shareholders and regulatory approval.[7] ABOUT THE TRANSACTION The transaction is subject to certain closing conditions, including the approval of Enodis shareholders, regulatory approvals in various jurisdictions and other customary closing conditions for a U.K. scheme of arrangement. Manitowoc has agreed to take the necessary steps to obtain these approvals. It is anticipated that this transaction will close by the fourth quarter of 2008.[12] The transaction, expected to be finalized during the fourth quarter of 2008, is subject to court approval in the U.K., the approval of Enodis shareholders, as well as regulatory approvals in various jurisdictions.[8]
The deal has been structured as a court-sanctioned scheme of arrangement under the laws of the U.K. and hence is subject to court approval in the U.K. The deal is also subject to the approval of Enodis shareholders and regulatory approvals in various jurisdictions for a U.K. scheme of arrangement. Manitowoc has agreed to take the necessary steps to obtain these approvals.[6]
An archived version of the management presentation and conference call will also be posted on the company's website for all investors. These statements are based on the current expectations of the management of Manitowoc and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "estimates" and words of similar import. These factors include, but are not limited to, unanticipated issues associated with the satisfaction of the conditions precedent relating to the proposed acquisition; issues associated with obtaining necessary regulatory approvals and the terms and conditions of such approvals; the inability to integrate successfully Enodis within Manitowoc or to realize synergies from such integration within the time periods anticipated; and changes in anticipated costs related to the acquisition of Enodis. Forward-looking statements only speak as of the date on which they are made. This announcement does not constitute an offer to sell or an invitation to purchase any securities or the solicitation of an offer for or buy any securities, pursuant to the acquisition or otherwise.[12]
Manitowoc, based in Manitowoc, Wis., will pay 258 pence ($5.09) per share and shareholders will also get a 2 pence (4 cent) dividend from London-based Enodis, the companies said. The offer is 82 percent higher than the Enodis' closing share price on April 8, the day before the offer period began, they said.[3] Under the terms of the offer, the diversified supplier, Manitowoc, will pay Enodis shareholders 258 pence in cash for each Enodis share.[6]
Last week, the companies confirmed that Manitowoc had made a tentative offer of 260 pence per share, with Enodis granting due diligence access to Manitowoc.[11] Manitowoc said it agreed to pay 258 pence per share for shares of Enodis, plus a 2-pence-per-share dividend to be paid in advance of the closing of the deal and the assumption of debt valued at US$207 million.[11] Enodis has agreed to pay a dividend of 2 pence per Enodis share, in advance of the closing of the deal, in place of an interim dividend for the financial year ending September 30.[6]
The transaction, which was unanimously approved by both companies' Boards of Directors, provides for a cash payment of 258 pence per Enodis share.[12]
Assuming a transaction close in the fourth quarter of 2008, the acquisition is expected to be EPS accretive in 2009 and EVA positive in 2011. For 2008, Manitowoc re-affirms its previous earnings guidance of $3.20 to $3.40 per share for the standalone business.[12] For Manitowoc, the acquisition, if closed in the fourth quarter, is estimated to be accretive to earnings per share in 2009 and economic value added, or EVA, positive in 2011.[6]
Manitowoc estimates the deal to be earnings accretive in 2009. The firm reaffirmed its earnings per share guidance given for fiscal 2008.[6] Manitowoc forecast the takeover will be earnings enhancing from 2009. It reiterated guidance for earnings per share of $3.20 to $3.40 this year.[13]
The company's three UK operating divisions are microwave business Merrychef, based at Aldershot, Scotsman Beverage Systems at Halesowen and Enodis UK Food Service, which is based near Sheffield and dates back more than 150 years. Monday's agreement values Enodis at a premium of 82% to its share price prior to Manitowoc disclosing its interest in the UK company.[9] Taking over Enodis would increase revenue from Manitowoc's food services business to about one third of the total from 11 percent last year, Baird's McCarthy said in yesterday's note.[15]
Enodis, which started life as a food merchant in the mid-19th century, unveiled an agreement with Manitowoc worth 260p a share, valuing the London-listed business at ''948 million.[9] Manitowoc, based in the Wisconsin town of the same name, will pay 258 pence a share and investors will receive a 2 pence dividend from Enodis, the U.S. company said today in a statement.[13] Enodis gained 4.7 percent to 241.75 pence in London, below Manitowoc's offer. The British company, which attracted three approaches in 2006, has advanced 71 percent since April 8, boosting its market value to 888 million pounds.[13] The American industrial company Manitowoc will this week take a major step towards acquiring Enodis, its British rival, by pledging to resolve any anti-trust concerns arising from their proposed £1bn deal. Enodis, which makes kitchen equipment for clients such as McDonald's, the fast-food chain, and Starbucks, the group of coffee bars, is understood to be preparing to recommend a 260p-a-share offer as soon as tomorrow.[14] The deal with Enodis is a part of Manitowoc's plan of global expansion, after the company acquired Potain and Grove in 2001 and 2002.[1]
"We believe the offer price provides good value to Enodis' shareholders while also allowing Manitowoc's shareholders to realize the benefits that the enhanced global business platform is expected to generate through deeper customer relationships, a more robust R&D; process, and operating synergies," Mr. Tellock explained.[12] Enodis' Global Foodservice Equipment businesses provide primary cooking, ovens, storage, preparation, holding, warewashing, ice machine, refrigeration and beverage equipment to restaurants and other customers worldwide.[12]
Enodis, which trades under the symbol ENO on the London exchange, is a global food and beverage equipment manufacturer with about 6,800 employees and 30 factories in nine countries. Its operational headquarters are in New Port Richey.[10] Enodis has approximately 6,800 employees and 30 factories in nine countries. It's listed on the London Stock Exchange, but its headquarters are in Tampa, Fla. The company's annual revenue is $1.6 billion.[11] The transaction is expected to create a company with $5.6 billion in revenue and produce more than $60 million in annual savings.[10]
April 14 (Bloomberg) -- Manitowoc Co., the biggest ice- machine maker in the U.S., agreed to buy Enodis Plc for 948 million pounds ($1.87 billion) to become the world's largest supplier of catering equipment.[13] Manitowoc, reportedly, has also agreed to pay Enodis a termination fee of $50 million, or GBP 25 million, if the deal is unable to obtain clearance from EC and U.S. antitrust authorities by October 11.[6]
Enodis is being advised on the talks by NM Rothschild, while Manitowoc has hired JP Morgan Cazenove to help it secure a deal. Enodis and Manitowoc both declined to comment on the deal. Expro International, the oil services group, will this week receive a formal takeover bid from Candover and a group of co-investors which include Alpinvest.[14] Manitowoc clinched the deal after it returned with a sweetened offer for Enodis last week.[6] At 260p, Manitowoc's all-cash offer will represent a premium of more than 60 per cent to the Enodis share price on the day the approach was disclosed.[14] Wisconsin-based Manitowoc, which specialises in manufacturing refrigerators and ice-making equipment, was spurned by Enodis in August 2006, when an offer in the region of 210p a share was rejected on value grounds.[9]
Arbuthnot noted that it could take until October to receive the regulatory nod, but it noted that Manitowoc has undertaken to take all necessary steps to achieve clearance. 'This is important because some overlap was identified the last time that Manitowoc approached Enodis (on ice making machines in the EU) and Manitowoc was not then prepared to sacrifice market share to achieve clearance,' the broker said in a note.[4]
'Of the two other groups who made an approach to Enodis in 2006, Middleby appears somewhat stretched in terms of operational and financial capacity following five acquisitions in 2005,' it said, while Aga has exited foodservice. It downgraded its recommendation on the shares from 'buy' to 'neutral' as the shares are now trading at a premium.[4] Glen E. Tellock, Manitowoc president and chief executive officer said, "We have long recognized the value that a combination of the foodservice businesses of Enodis and Manitowoc would create. We believe the strategic benefits of the combination are substantial, and we are pleased to have reached an agreement for this transforming acquisition."[12]
The acquisition, subject to shareholder approval, will result in annual savings of at least $60 million by 2010, excluding any one-off costs, Manitowoc said.[13] All necessary steps will be taken to get regulatory clearance by Oct. 11, or Enodis will get a $50 million termination fee, Manitowoc said.[13]
The Manitowoc Company says it has an agreement to acquire Enodis plc for around $2.1 billion.[8] Manitowoc will also take over approximately $207 million Enodis' net debt.[6] Manitowoc is now thought to have agreed to make any necessary disposals in order to complete the takeover. Manitowoc's willingness to pay such a substantial premium for Enodis underlines the continuing impetus for strategic transactions despite the collapse of the debt markets.[14] The Manitowoc, Wisconsin-based firm noted that the proposed acquisition, which is expected to close in the 2008 fourth quarter, has no financing conditions. Manitowoc stated that the Board of Directors of both firms has already unanimously approved the transaction.[6] There are no financing conditions in the proposed acquisition. J.P. Morgan Securities, Inc. is acting as financial advisor and both Foley & Lardner LLP and Linklaters LLP are acting as legal advisors to Manitowoc in this transaction.[12]
JPMorgan Chase Bank, N.A., Deutsche Bank AG New York Branch, Morgan Stanley Senior Funding, Inc., and BNP Paribas have agreed to provide financing. Manitowoc believes its solid balance sheet and rapid deleveraging ability will enable the company to maintain its strong financial profile and strategic flexibility.[12] Manitowoc shares declined $1.48, or 3.5 percent, to $40.52 at 4 p.m. in New York Stock Exchange composite trading.[15] By contrast, Manitowoc has declined 11 percent. It traded down 2.3 percent at $39.61 in New York as of 11:02 a.m. local time.[13]
Enodis, which supplies fryers and breakfast holding cabinets to McDonald's Corp., will add customers in Europe and Asia and also cut Manitowoc's dependence on cranes as U.S. construction slows. Cranes account for 81 percent of its sales. [13] People close to the U.S. company said last night that Manitowoc had cleared a major obstacle to securing a recommendation by agreeing to a deal that would see it shoulder the burden of any competition issues.[14] Previous talks in August 2006 over a 220 pence-a-share deal ended after product overlap in areas including ice machines raised U.S. antitrust concerns, Manitowoc said at the time.[15]
A previous deal between the two, which was poised to take place two years ago, is understood to have fallen apart because of the large combined U.S. and European market shares the two companies would have in the area of ice-producing kitchen equipment.[14] The FTSE 100 Index closed down 69.6 points at 5895.5, having earlier lifted above 6000. The Dow Jones Industrial Average sank more than 140 points in early trade after the GE news and data showing that U.S. consumer sentiment is now at its lowest level in 26 years. In London, banking shares were among those worst affected, with Lloyds TSB down 13.25p at 433p and Barclays 10.25p lower at 453p.[16]
Terms call for a cash payment of 258 pence per share for Enodis, which is listed on the London Stock Exchange.[10] Enodis rose 0.4 percent to 231 pence in London trading today, giving the company a market value of 848 million pounds.[15] The U.S. company already controls about 40 percent of the $700 million U.S. ice-machine market and adding Enodis's Scotsman and Ice-O-Matic brands would boost that to 70 percent, Robert F. McCarthy, an analyst with Robert W. Baird & Co. in Chicago, said in an April 10 note.[13]
The company also provides shipbuilding, ship repair, and conversion services for government, military, and commercial customers throughout the U.S. maritime industry.[8] The company offers one of the broadest lines of cold- side equipment in the foodservice industry.[8] The company continues to believe there will be incremental margin improvements in the second half of 2008 in the Crane segment and better than industry growth with Foodservice revenues in the mid-single-digits and improving margins in the mid-teens.[12] Analysts' estimates stand at $3.41 for the full year. The firm continues to believe there will be incremental margin improvements in the second half of 2008 in its Crane segment, as well as better-than-industry growth in its Foodservice revenues in the mid-single-digits and improving margins in the mid-teens.[6]
Historical revenues for the combined companies for the most recently completed respective financial years exceeded $5.6 billion.[12]
The company posted sales of $1.6 billion in the fiscal year ended Sept. 29.[10]
The group, which is one of the UK's biggest buy-to-let lenders, has been the subject of regular speculation since the credit crunch first hit. It previously raised more than a quarter of its capital through the wholesale money markets before these effectively dried up, triggering the problems that ultimately led to the nationalisation of Northern Rock. The group has since focused on funding its lending through retail deposits, taking in ''1.3 billion during the first four to six weeks of this year, and it now regularly features on best buy tables as it looks to attract more savers.[17] The group said retail profit warnings usually peak during the first three months of the year, as firms provide Christmas and January sales post-mortems. It said it was clear this year that the sector was in more distress than in 2007, with 42% of FTSE general retailers issuing a profit warning during the year to the end of March, compared with 26% during the previous 12 month period.[18]
The Food Retail Equipment operations provide refrigeration systems, refrigerated display cases and walk-in cold storage rooms primarily to supermarkets and convenience stores in North America.[12] Enodis is a former owner of retail kitchens and joinery business Magnet, but now concentrates on selling specialist equipment to the likes of Starbucks and McDonald's. It employs more than 6,000 people in eight countries, including 400 people at three sites in the UK.[9] Full details of the acquisition, which will be implemented by means of a UK scheme of arrangement under the UK Companies Act 2006, will be contained in the scheme document that will be circulated to Enodis shareholders.[12]
The transaction, expected to close in the fourth quarter, requires regulatory and shareholder approvals, including court approval in the United Kingdom.[11] Manitowoc, whose main business is cranes, said today it expects to get regulatory approval within six months.[13] The crane maker has agreed to sell some assets that may raise antitrust concerns, the Sunday Telegraph reported yesterday, citing unnamed people close to Manitowoc.[13]
"With the world's largest foodservice companies growing at rates well in excess of the overall industry, we should be well-positioned to partner with our customers in creating modern, efficient kitchens that deliver the dining choices that consumers want," said Michael Kachmer, president of Manitowoc Foodservice.[11] Manitowoc (NYSE: MTW), based in Manitowoc, Wis., is one of the world's largest providers of lifting equipment for the construction industry and also manufactures ice-cub machines, ice and beverage dispensers and commercial refrigeration equipment.[10]
Enodis had two other failed approaches in 2006, including a 798 million-pound proposal from British competitor Aga Foodservice Group Plc, which had since exited the industry.[15] In 2001 and 2002, the company acquired Potain and Grove to create one of the global crane industry's most complete product portfolios.[12] The proposed acquisition continues the company's history of creating global growth platforms through meaningful bolt-on acquisitions.[12] "We believe the expanded global footprint of the combined businesses creates an outstanding growth platform for Manitowoc Foodservice," said Michael Kachmer, president of Manitowoc Foodservice.[12]
Manitowoc made a sweetened offer for Enodis almost two years after dropping an earlier bid. [15] Kitchen equipment firm Enodis has given its backing to a takeover by the same American firm it snubbed two years ago.[9]
Elsewhere, Dairy Milk maker Cadbury was on the back foot, shedding 3% after trading figures received a lukewarm reaction in the City. Friends Provident was also moving lower, off 4.8p at 130.6p, after reports that U.S. private equity firm JC Flowers may end its takeover interest in the life assurer. ITV enjoyed better fortunes, securing its place as one of the market's top risers with a gain of 0.4p to 61.9p, as investors eyed a possible bargain after the broadcaster's shares fell to a new record low.[16] MTW closed Friday's regular trading on the NYSE at $40.52, down $1.48, or 3.52%, on volume of 1.79 million shares.[6] ENO.L is currently trading on the LSE at 243.00 pence, up 12.00 pence, or 5.19%, with 4.71 million shares.[6]
Manitowoc, based in the Wisconsin town of the same name, will pay 260 pence a share in cash, said the people, who didn't want to be identified because the talks are private.[15] Arbuthnot added that it believes the gap between the current share price and the 260 pence offer will close over the coming weeks.[4] The offer is 72 percent higher than London-based Enodis's closing share price on April 9.[15] The offer is 82 percent higher than London-based Enodis's closing share price on April 8, the day before the offer period began.[13]
The purchase will leave food-service gear generating about 30 percent of total revenue from 11 percent, Nigel Coe, an analyst with Deutsche Bank in New York, wrote in a research note last week. U.S. -based fast-food chains are investing in new cookers as they broaden menus and tap more health-conscious customers with low-fat options. [13] Financing for the deal has been secured by means of a $2.4 billion credit agreement with JPMorgan Chase & Co., Deutsche Bank AG, Morgan Stanley and BNP Paribas SA. JPMorgan Chase will act as the lead bank.[13] Taking the plunge: Opportunity knocked and this entrepreneur rushed in. He didn't change his sales strategy. He changed his client strategy. Charles Myers bootstrapped his company after staggering losses on a business deal gutted the company'''s capital. Now Myers takes direct involvement in each project and lets someone else handle what had primarily been his role, business development.[10]
Management currently estimates that by 2010 the transaction will generate annual synergies of more than $60 million. [12] Enodis was 11-3/4 pence, or 5.09 percent, higher at 242-3/4 pence at 10.51 a.m., while the FTSE 250 index was down 28.9 points or 0.29 percent.[4]
SOURCES
1. Manitowoc to Acquire Enodis
2. SunHerald.com : The Manitowoc Company, Inc. to Acquire Enodis plc For $2.1 Billion
3. The Associated Press: Manitowoc Agrees to Buy Enodis for $1.9B
4. Manitowoc makes 260 pence per share agreed offer for Enodis UPDATE
5. Free Preview - WSJ.com
6. RTTNews - Global Business News, Business Newswires, Business Articles, News Analysis.
7. WKBT La Crosse, WI-NewsChannel 8, La Crosse Weather, La Crosse News, La Crosse SportsManitowoc Co. acquiring Enodis for $2 billion
8. MyFox N.E. Wisconsin | Manitowoc Co. to Acquire British Foodservice Company
9. The Press Association: Enodis backs takeover offer
10. Manitowoc buys Enodis for $2.1B - Tampa Bay Business Journal:
11. Manitowoc to buy Enodis in $2B deal - The Business Journal of Milwaukee:
12. The Manitowoc Company, Inc. to Acquire Enodis plc For $2.1 Billion
13. Bloomberg.com: Europe
14. Manitowoc to clinch '1bn Enodis takeover - Telegraph
15. Bloomberg.com: Worldwide
16. blackenterprise.com
17. The Press Association: Mortgage bank denies equity rumours
18. The Press Association: Profit warnings hit seven-year high
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