×

ITW, Manitowoc Battle to Take Over UK Company

Britain's Enodis has agreed to be bought by Illinois Tool Works for 1.03 billion pounds ($2 billion), turning its back on the agreed 948 million pounds ($1.9 billion) takeover by U.S.-based Manitowoc.

It means two U.S. companies are now battling it out to takeover the British maker of fast-food fryers.

Enodis shareholders will receive 280 pence per share in cash, a 15 percent premium to Wednesday's 243.5p closing price.

Illinois Tool Works 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 Manitowoc -- which makes cranes and restaurant equipment -- for 260p per share.

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.

Manitowoc was not immediately available for comment.