The Manitowoc Company, a leading manufacturer of commercial refrigeration equipment among others, recently announced that it has been notified by the UK Takeover Panel that Enodis, one of the world’s leading suppliers of “heat” and “cold” foodservice equipment, intends to recommend Manitowoc’s offer following completion of an auction process with Illinois Tool Works.

Manitowoc’s successful bid was of approximately $2.7 billion, including the assumption of Enodis’ net debt (approximately $249 million / £125 million as of March 29, 2008). The transaction will be structured as a court-sanctioned scheme of arrangement under the laws of the U.K. and is expected to close in the fourth quarter of 2008. The transaction is subject to court approval in the U.K., the approval of Enodis shareholders, as well as regulatory approvals in various jurisdictions.

 

Glen E. Tellock, Manitowoc president and chief executive officer said: “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.” Manitowoc’s management currently estimates that, by 2010, the transaction will generate annual synergies of more than $80 million, reveals the company’s press release. “We believe the expanded global footprint of the combined businesses creates an outstanding growth platform,” said Michael Kachmer, president of Manitowoc’s Foodservice segment.