Manitowoc has announced that it will split into two, independent and publicly-traded companies.
The move will separate the company’s cranes and foodservice businesses through a tax-free spin-0ff of Foodservice. The spin-off is expected to be completed in the first quarter of 2016.
“After a comprehensive evaluation, including a thorough review of the current and projected operating environments for the two segments, we have determined that the Cranes and Foodservice businesses are best-suited to realize their full potential on a standalone basis,” said Glen E. Tellock, Manitowoc chairman and CEO.
Manitowoc Cranes posted sales of $2.3 billion in 2014, 60 percent of which came from markets outside the U.S.
The Foodservice business manufactures commercial foodservice equipment for restaurants, convenience stores hotels and hospitals. The segment posted sales of $1.6 billion in 2014.
The company says allowing each business to “pursue individual strategies as market conditions improve,” is best for their long-term success and makes them much more flexible.