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.
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.
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.
Enodis' shares rose 5.2 percent to 243 pence ($4.79) in morning trade.
''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.
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.
