The Manitowoc Company, Inc. (NYSE: MTW - News) today completed the previously announced agreement to sell the Enodis ice machine operations to affiliates of certain funds managed by Warburg Pincus LLC for $160 million.
This business has been sold to satisfy regulatory conditions of various jurisdictions, including the U.S. and Europe, related to the Enodis acquisition that was completed on October 27, 2008.
The company intends to use the after-tax net proceeds of approximately $150 million to reduce a portion of the debt incurred in November 2008 to fund the Enodis acquisition. Specifically, the proceeds will be applied primarily to reduce the $181.5 million remaining on Term Loan "X" that matures in April of 2010. It is anticipated that the remaining portion of Term Loan X will be retired later this year using cash flow from operations.
Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. served as financial advisors to Manitowoc on this transaction.
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