Livingstone Cooks Up a Trans-Atlantic Commercial Kitchens Deal
March 2011
Livingstone, the leading independent, international investment banking firm, has recently advised the Board of Lincat Group plc (“Lincat”) on the sale of the company to US headquartered The Middleby Corporation (“Middleby”).
Lincat is a UK-based manufacturer of commercial kitchen and bar equipment. Its 2010 results, announced on the same day as the transaction, show group turnover of £32.7m (approximately $52.5m) and operating profits of £5.6m (approximately $9m).
The transaction which is to be implemented via a scheme of arrangement, values the company at c.£58m and each share at 1050p, a premium of nearly 40% to the closing price immediately prior to announcement and an even more impressive premium to average share prices given that within the last 12 months Lincat’s share price has been as low as 460p.
Middleby is committed to building a strong presence in the UK market and views this transaction as an important strategic step; it intends to keep manufacturing in the UK and believes there will be significant opportunities for Lincat to grow as part of the wider Middleby group. Lincat employs nearly 300 staff over three sites located throughout the UK.
Alan Schroeder, Chairman of Lincat, commented: “Livingstone has done an excellent job for the Board, finding a partner for the business and generating an offer we have every confidence in recommending to the shareholders. They were a pleasure to deal with as they guided us through the process, adding value at each stage.”
Phillip McCreanor said: “This transaction is an illustrative example of our ability to manage a global auction process, to achieve the best price, within the conflicting requirements of the UK Takeover Code.”
David Sulaski, Partner at Livingstone Chicago said: “Livingstone is pleased to have advised on another successful trans-Atlantic transaction. Our middle market clients, on both the buy and sell-side, are increasingly needing the global reach that we provide.”
Livingstone has recently completed several notable cross border deals, including the sales of Travel Jigsaw to Priceline.com and Veris plc to ARAMARK, and the acquisition of MedEx Global Solutions by MML Capital and Exploration Logistics Group plc.
For further information contact:
David Sulaski
T: 312 670 5902
E: sulaski@livingstonepartners.com
Phillip McCreanor
T: +44 20 7484 4725
E: mccreanor@livingstonepartners.co.uk
