Takeover Battle for Enodis19 May 2008
It may not be as big as Microsoft, Google and Yahoo!, but for us it's interesting to watch the bidding war between the restaurant equipment companies Manitowoc and Illinois Tool Works for Enodis. (Today Manitowok increased it's offer to $2.1 billion). All three are big suppliers to McDonald's,
In our kitchen, the biggest pieces of equipment are Garland grills and Frymaster fryers. Both come from divisions of Enodis. In fact, we're looking at investing in a new energy-efficient low-oil-volume fryer from Frymaster this year (right now the low dollar makes the price attractive). Our beverage system, on the other hand, comes from the Multiplex division of Manitowok.
The result of the bidding war will not of course affect our investment decision. And we don't know whether the consolidation will result in more efficiency with lower prices or higher prices due to reduced competition. We just need to increase our fryer capacity.