MANITOWOC, Wis. (AP) -- Manitowoc Co. Inc., which manufactures cranes and foodservice equipment, has agreed to sell its ice-making business for $160 million to satisfy U.S. and European regulators as part of its purchase of British cooking equipment supplier Enodis PLC.
Manitowoc said it will sell its Scotsman, Ice-O-Matic, Simag, Barline and other ice machine and related businesses operated by subsidiaries of Enodis to an affiliate of the investment firm Warburg Pincus.
Manitowoc was required to divest the ice business to comply with terms of the approval by the Department of Justice and European Commission of its $2 billion-plus acquisition of Enodis last October.
The deal to sell the ice business to Braveheart Acquisition Inc. was disclosed Thursday in a filing with the Securities and Exchange Commission.
The Manitowoc, Wis.-based company said March 3 it would take a $175 million, non-cash charge to reduce the value of assets that it was required to sell to meet conditions for clearance of its buyout of Enodis. It also said that lower-than-previously expected proceeds from the sale could result in the company violating agreements with its creditors.
It said the acquisition of Enodis provides greater capacity to produce refrigerators, ice makers, beverage dispensers and other equipment for commercial kitchens.
The sale of the ice business requires approval by regulators.
Manitowoc shares fell 18 cents, or about 4 percent, to $4.66 in morning trading.