Britain’s Enodis agrees $2 billion takeover by ITW

Source: Manufacturing Exec

Date :08/05/2008 02:29:15

Food equipment manufacturer Enodis Plc has agreed to be bought by Illinois Tool Works (ITV) for £1.03 billion ($2 billion), turning its back on the agreed £948 million ($1.9 billion) takeover by U.S.-based Manitowoc.

Enodis shareholders will receive 280 pence per share in cash, plus a 2p dividend, a 16 percent premium to Wednesday's 243.5p closing price.

ITW makes cooking and other kitchen equipment among its broad range of other tools and products.

The deal trumps the agreement struck by Enodis' board earlier this month to sell itself to US engineering group Manitowoc for 260p per share, including a 2p dividend.

Expansion

ITW is buying Enodis to expand its product categories and fast food segment opportunities, it said.

"Having considered carefully all aspects of the offer from ITW, including transaction certainty, from an anti-trust perspective, and the higher price which this offer provides, the Enodis directors have decided unanimously to recommend the offer from ITW to shareholders," said Enodis Chairman Peter Brooks.

ITW will also take on $210 million of Enodis debt, bringing the total deal price to $2.3 billion.

May 08, 2008