Electrolux Professional has entered into an agreement to acquire a major US-based manufacturer of foodservice equipment, Unified Brands, and its related assets, from Dover Corporation, a US-headquartered diversified global manufacturer and solutions provider.
The acquisition is intended to strengthen Electrolux Professional’s presence in the US and supports the company’s focus on growth with the foodservice chains.
The deal is for approximately SEK2,140m/US$244m (£180m), on a cash and debt-free basis including certain tax benefits, subject to customary post-closing adjustments.
Unified Brands, founded in 1907, has approximately 600 employees and is based in Conyers, Georgia. The company is expected to generate approximately US$135m (£100m) in revenue in 2021. It operates two manufacturing and R&D facilities, one in Weidman, Michigan and one in Vicksburg, Mississippi. The company and its Groen, Randell, Avtec, Power Soak and CapKold brands offer cooking equipment, refrigeration, cleaning systems, ventilation, and meal distribution systems.
Alberto Zanata, president and CEO of Electrolux Professional, said: “We are very excited to announce this transaction, which is in line with our strategy to grow our presence in the US market as well as our focus on foodservice chains.
“Unified Brands has a very attractive portfolio of products and brands. With its strong local market recognition, customer relations, presence in chains, and local manufacturing capabilities, this acquisition will significantly strengthen our position in the US. I am also pleased that the management team of Unified Brands has agreed to stay in their roles.”
Closing is expected to take place during the fourth quarter of 2021, subject to customary regulatory approvals. Following the acquisition, Unified Brands is expected to operate as it does today and will be reported as part of Electrolux Professional’s food and beverage segment.
The acquisition is financed by internal funds and existing bank and credit lines. The net debt/EBITDA ratio after the acquisition is not expected to be above the company target of 2.5x.