Standex has offloaded a US foodservice business unit that it owned, saying it no long fits with the core focus of the rest of its catering equipment operation.
American Foodservice Company, a manufacturer of custom-fabricated products that was formerly part of Standex’s Foodservice Equipment Group, was sold to AFS All-American Millwork and Fabrication earlier this month.
Terms of the deal were not disclosed, but Standex told investors that it anticipates reporting charges of approximately $0.28 (£0.16) per share, post tax, in discontinued operations during the fourth quarter of its current fiscal year.
Standex president and CEO, David Dunbar, said the sale of the American Foodservice Company business was in line with the division’s strategy to tighten its focus and improve margins.
He elaborated: “American Foodservice Company designs and manufactures custom fabricated stone, wood, stainless steel, solid surface and millwork products. The highly customised and specialised nature of this business presented few synergies with our core food service equipment business and was dilutive to its margins.”
The sale comes just a couple of weeks after Standex bolstered its foodservice division with the acquisition of Ultrafryer Systems, a specialist supplier of commercial deep fryers.
Standex sees the Ultrafryer as an important step towards moving into the foodservice chain fryer segment while reinforcing its current fryer product offerings within the grocery retail segment.
Ultrafryer will add sales of $15m (£9m) a year to Standex’s top line.