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Berisford's $712M Scotsman
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July 2, 1999: 3:36 a.m. ET
U.K. kitchen equipment maker swallows Illinois-based rival
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LONDON (CNNfn) - Berisford, Britain's largest catering and kitchen equipment manufacturer, announced the takeover of Illinois-based Scotsman Industries Inc. Friday.
Berisford is offering $33 a share in cash for Scotsman (SCT), which specializes in commercial refrigeration equipment. The U.K. group will assume $348 million in debt taking the value of the deal to $712 million.
The deal represents a premium of 51 percent on Scotsman's shares, which closed Thursday up 1/4 at 21-13/16.
Berisford, with 1998 sales of $1.01 billion, operates in the United Kingdom through Magnet, which produces kitchen and bathroom equipment. Its U.S. arm Welbilt provides kitchen equipment to the catering industry.
Berisford plans to integrate Scotsman, whose 1998 sales reached $641 million, with Welbilt to provide a one-stop shop for hot and cold food service equipment. It said the enlarged company would provide the basis for a global expansion.
Berisford has a market capitalization of $584.1 million compared to Scotsman's $363.1 million, and plans to close the transaction by the start of August. Scotsman's board has recommended the offer.
Berisford (BRFD) shares closed at 242 pence in London Thursday.
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