United Technologies to Sell Ice Cream-Machine Manufacturer for $1 Billion
18 Mayo 2018 - 6:29PM
Noticias Dow Jones
By Aisha Al-Muslim
United Technologies is selling the Taylor Co., which produces
ice-cream and frozen-drink machines, to Middleby Corp. for $1
billion in cash, as the industrial conglomerate works to sharpen
its focus on its core businesses.
United Technologies -- which owns jet-engine maker Pratt &
Whitney, Otis elevators and Carrier air conditioners -- said Taylor
had been part of its climate, controls and security unit.
In 2017, Taylor generated about $315 million of revenue and $65
million of adjusted earnings before interest, taxes and
depreciation, according to Middleby. United Technologies generated
a total of $59.84 billion in net sales last year.
Elgin, Ill.-based Middleby, a manufacturer of food-service
equipment, said the acquisition will bolster its position in the
commercial food-service industry. Rockton, Ill.-based Taylor's
product line also includes beverage machines and automated
double-sided grills. Taylor's products are used in quick serve,
casual dining, retail, convenience stores and institutional
food-service establishments.
The Taylor sale is expected to close early in the third quarter,
the companies said Friday.
The deal comes as United Technologies is pushing to close one of
the biggest aerospace deals ever and weighs a breakup, a move Bill
Ackman's Pershing Square Capital Management LP and Daniel Loeb's
Third Point LLC have been pushing the company to pursue. United
Technologies agreed in September to buy Rockwell Collins for $23
billion. The Farmington, Conn., company has said it would conduct a
portfolio review to examine a split, a process it expects to
complete by year-end.
In separating, Rockwell would merge with United Technologies's
aviation-services division and Pratt & Whitney engines division
to form a large aviation company, while both the climate, controls
and security division and Otis elevators business would become
separate companies.
Middleby plans to finance its purchase of Taylor with an
existing credit line. The company said it expects the acquisition
to increase its earnings per share within the first year after
closing.
The Taylor management team is expected to continue to run the
business and operate from its existing facilities, Middleby
said.
United Technologies shares, up 4.9% in the last 12 months, fell
0.1% to $125.05 in after-hours trading Friday. Shares of Middleby,
down 19% in the past year, were unchanged at $104.45.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
May 18, 2018 19:14 ET (23:14 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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