04.03.2016
Manitowoc splits
Manitowoc has completed the spin-off of Manitowoc Foodservice as an independent public company with shares listed on the New York Stock Exchange.
The spin-off was achieved through a tax-free distribution to Manitowoc shareholders of one share of Manitowoc Foodservice stock for every share of Manitowoc stock held at the close of business on February 22nd. This leaves Manitowoc Crane as a stand-alone publicly quoted crane manufacturing company – one of the few in existence, only Tadano immediately springs to mind.
Interim chief executive Kenneth Krueger said: “We are extremely pleased to complete the spin-off of Manitowoc Foodservice. Under the leadership of Barry Pennypacker and Hubertus Muehlhaeuser, both Manitowoc Cranes and Manitowoc Foodservice are well positioned as independent, public companies to generate sustainable growth and value creation for their respective shareholders,”.
Vertikal Comment
This issue which has been a corporate distraction for the business was initiated by Carl Icahn
Se Manitowoc cuts a deal with Icahn for all the wrong reasons. But regardless of your views on this it is now done and the crane company will have to stand on its own feet for the first time in its history.
The reason that there are so few publicly quoted mobile/tower crane specialists probably relates to the cyclical nature of the business. Having a different type of business in the group that cycles differently can provide continuity, helping each other through the troughs of the cycles.
Tadano has been very successfully managed to operate as a public company, if so there is no reason to think that Manitowoc will not. Although the American investor is a very different beast to the Japanese investor who tends to be much more long term in his outlook. Tadano is also still family run - Big difference.
It would not be surprising to see Manitowoc crane - and perhaps the food business - acquired by a larger equipment company in the not too distant future. Perhaps Manitowoc is a better target for Zoomlion?? Or another Chinese manufacturer? But that is what Icahn probably had his mind all along.
Watch this space
Sherm
This case reminds me of a steakhouse I was manager in 1988 of with the mission of getting it cleaned up and sales pumped up. In four months I got revenue up by 22% and patronage was growing. The general partner suddenly bought out his four partners of eight years so he would have full control to sell it to a couple who had a much smaller competitive restaurant in the same town. The buyers raised 51% of the purchase price and borrowed the balance from the general partner. Many times I have wondered if he ever got out from under this elephant.
I hope Manitowoc can make their split work with mutual benefit for both entities.