British cooking equipment maker backs $2.1B bid

Enodis said that it will recommend a 328 pence ($6.55) per share cash offer from Manitowoc Company Inc., a U.S. ice machine maker, following an auction arranged by Britain's takeover regulator.

The Takeover Panel said that Illinois Tool Works had withdrawn its 280 pence ($5.59) per share offer announced in May. The panel added that it had agreed not to reveal details of any increased bid made by Illinois Tool Works during the auction.

Enodis chairman Peter Brooks said that the final offer from Manitowoc was the best value for shareholders.

"Having considered carefully all aspects of the bids received, including transaction timing and execution risk, in particular from an antitrust perspective, and the higher price which this offer provides, the board of Enodis intends to recommend unanimously the offer from Manitowoc to shareholders," Brooks said in a statement.

The final offer from Manitowoc, based in the Wisconsin city of the same name, is well above its first offer in April of 260 pence ($5.09) per share.

Enodis, which supplies fryer systems, refrigeration units and ice and beverage dispensers to restaurants and retailers, including McDonald's Corp. and Wal-Mart Stores Inc., had consistently supported increased bids from Manitowoc despite attempts by Illinois Tool Works to stymie a deal.

An Enodis-Manitowoc tie-up will give Manitowoc entry into two major new market segments--hot food service and food retail equipment.

"Even at the higher price, we believe the strategic benefits of the combination are significant while remaining consistent with the strict financial disciplines that we have adhered to for all our acquisitions," said Manitowoc chief executive officer Glen E. Tellock.

Enodis has successfully fought off a series of takeover bids over the past two years.