Lincat in £58m takeover
Lincat, the Lincoln-based catering equipment manufacturer, is to be acquired by the UK arm of US kitchen giant Middleby. The deal, which values Lincat at £58m, was revealed as the company released its preliminary results to the London Stock Exchange (LSE) this morning. Lincat’s directors said the price offered for the company was at “a significant premium”.
Lincat will be acquired by Warrington-headquartered Middleby UK, the British arm of the Middleby Corporation, which is based in Illinois, US.
Under the terms of the acquisition, Lincat Shareholders will receive 1,050 pence in cash for each share, valuing the company at about £58m.
Lincat’s directors said they consider the terms of the acquisition to be “fair and reasonable so far as Lincat shareholders are concerned”.
Selim Bassoul, chairman and chief executive of Middleby, said: “Lincat is a leading brand in the UK foodservice industry and its broad line of products is highly complementary to Middleby's existing portfolio.
"This acquisition will provide Middleby with a local manufacturing platform and significantly enhance our presence in the UK market. We believe this transaction will provide for meaningful growth opportunities for both Middleby and Lincat in the UK market as we leverage Lincat's existing sales, service and manufacturing capabilities.”
Alan Schroeder, chairman of Lincat, said: “The board of Lincat is confident that the offer from Middleby is in the best interests of Lincat's shareholders and its employees. We believe the price being offered is at a significant premium and is one which reflects the underlying value and prospects of the Lincat Group.
“Lincat will provide Middleby with a significant platform in the UK whilst Middleby's diverse geographic presence will provide Lincat with increased access to overseas markets.”
The acquisition offer was revealed as Lincat released its preliminary results this morning.
For the year to 31 December 2010, revenues on continuing operations were up 6 per cent to £32.7m. The company also secured 15 per cent growth on underlying operating profit, which increased from £4.9m in 2009 to £5.6m at the end of 2010.
