14.11.2005

Manitowoc Sells domestic fridge business

The Manitowoc Company, Inc announced today that it has signed a definitive agreement to sell the assets of its Diversified Refrigeration, Inc. subsidiary to Monogram Refrigeration, LLC, a wholly owned subsidiary of General Electric.

The transaction is expected to close prior to year end. No details of the transaction have been disclosed, but Manitowoc expects to realise a gain on the sale of the assets in its fourth quarter.

DRI manufactures the Monogram brand of domestic refrigerators and freezers on a private-label basis for GE. The company is based in Selmer, Tennessee, and employs approximately 420 people, including temporary workers. DRI became part of Manitowoc in 1995, following it’s acquisition of The Shannon Group.

In announcing the pending sale, Terry D. Growcock, Manitowoc's chairman and chief executive officer, said: "This transaction would accomplish several objectives. It allows Manitowoc to invest in high-growth opportunities and focus its resources on operations that build brand equity in the commercial foodservice industry. Equally important, DRI would be better positioned for growth by being more closely aligned with its sole customer."