The company currently anticipates effecting the separation through tax-free spin-off of the foodservice business and expects the spin-off to be completed in the first quarter of 2016, creating two separate companies with distinct strategies.
Glen E. Tellock, chairman and chief executive officer of Manitowoc, said: “Manitowoc’s management team and our board of directors regularly evaluate and explore opportunities to optimise the company’s performance and create value for shareholders.
“Manitowoc has taken and continues to take actions to enhance returns, including margin expansion initiatives, re-investment in our businesses, and utilisation of our free cash flow to de-lever our balance sheet. We believe the separation of Cranes and Foodservice will position these businesses to take advantage of anticipated long-term improvement in demand and other opportunities in their respective markets.”
Manitowoc’s Foodservice business reported an annual revenue of $1.6 billion in the twelve-month period, ending December 31st, 2014. The business manufactures commercial foodservice equipment serving the ice, beverage, refrigeration, food prep, and cooking needs of restaurants, convenience stores, hotels, hospitals, and other institution.
The company expects the separation will enable each business to pursue individual strategies and to attract a long-term investor base appropriate to the operational and financial characteristics of each business.