With M&A news from J.M Brennan, The Manitowoc Co., Centurion Data, Emteq and DRS Technologies.
J.M. Brennan acquires H.V.A.C. of Wisconsin
Milwaukee-based J.M. Brennan, a mechanical contractor, announced that it recently purchased Racine-based H.V.A.C. of Wisconsin Inc., which specializes in HVAC installation, maintenance and service. As a result of the acquisition, J.M. Brennan said it will be able to offer "local, high-quality services to existing and new customers in the Racine, Kenosha and Walworth areas." All current H.V.A.C. of Wisconsin employees will remain with the company. In addition, J.M. Brennan announced that it plans to hire additional employees and open an office in Sturtevant. J.M. Brennan also can now offer H.V.A.C. of Wisconsin customers an expanded line of services, including plumbing, controls, sheet metal and piping, as well as assistance in construction projects.
"H.V.A.C. of Wisconsin has an excellent reputation. We are excited to expand our services and customer base through this merger," said John Brennan, president of J.M. Brennan. "With our combined expertise, we can provide a wider base of customers with quality mechanical and HVAC services."
"Our customers will benefit greatly from this partnership," said Gene Townsend, former owner of H.V.A.C. of Wisconsin and current J.M. Brennan south region service manager. "We will be able to offer our customers an expanded variety of mechanical services to fit their unique needs. They will continue to receive the first-rate service they are used to from familiar faces, now enriched with the additional services J.M. Brennan provides."
The Manitowoc Company increases offer for British firm
Manitowoc-based The Manitowoc Company Inc. has increased its offer for United Kingdom-based Enodis to $2.4 billion, after an earlier bid was topped by Illinois Tool Works’ $2.3 billion offer. The deal would include the assumption of Enodis’ net debt (approximately $245 million as of March 29, 2008).
Enodis is one of the leading global food and beverage equipment manufacturers with approximately 6,800 employees and 30 factories in 9 countries. The company is based in London and operationally headquartered in Tampa, Fla.
"We reconsidered our options carefully and reaffirmed that there is significant strategic merit in bringing these two strong organizations together," said Glen E. Tellock, Manitowoc president and chief executive officer. "Our announcement today highlights that we are determined to bring to bear the many benefits we believe a combination will deliver. Our increased offer is at a five percent premium to ITW’s offer and a 63.7 percent premium to Enodis’ average closing price for the 12 months ending April 8, 2008. As such, we believe strongly that our revised offer represents superior value for Enodis’ shareholders. At the same time our revised offer still meets our financial objectives of being EPS accretive in two years and EVA positive in three years."
Centurion Data acquires Lake Systems Inc.
Pewaukee-based Centurion Data Systems (CDS), a network infrastructure provider, announced that it has acquired Lake Systems Inc., a Pewaukee software firm that specializes in Enterprise Resource Planning (ERP). With Lake Systems, CDS now has a customizable, robust and fully integrated accounting, manufacturing and distribution application.
"This is very exciting for us. The Midwest has a lot of manufacturing so it gives us an ‘in’ into a segment of the market that wasn’t previously a focus," said Bill King, senior vice president of Centurion Data Systems. "Centurion Data Systems has always provided network infrastructure but our clients are mostly professional service firms, law firms, technical writers, and architects. The addition of an ERP package opens the door to working with manufacturers."
With an ERP application, CDS clients will have a seamless integration between accounting, distribution (including order processing, inventory management and purchasing) and manufacturing (shop floor, routing and bill of materials). Additional customized components can be engineered, including asset tracking, consumable goods tracking, quoting, bar coding, private labeling, lot control and audio/visual shop floor alerts.
"Joining a company like CDS is the ideal scenario," said Rick Benkstein, who founded Lake Systems in 1990 and assumes the title of manufacturing consultant in sales with CDS. "I’ve been an entrepreneur for almost 20 years. Now I’m part of a team which has expertise in areas that I don’t, and I bring to them my ERP background."
"Rick will continue to service his former Lake Systems customers and will help us develop new business," King said. "His strength is his knowledge of manufacturing best practices and he shares CDS’ commitment to helping clients use the full potential of their technology software and systems to support their business objectives."
Emteq shareholders invest in Montana partnership
The shareholders of New Berlin-based Emteq Inc. announced they have acquired individual shares of Cable Technologies of Montana Inc. (CTI), a Great Falls, Mont.-based designer and manufacturer of wire and cable-related assemblies. The partnership is intended to strengthen Emtequ’s electronic assembly and integration work.
Emteq specializes in avionics systems and integration, interior lighting and cabin comfort as well as exterior lighting products for retrofit and forward fit applications in the military, corporate, helicopter and air transport market. Both companies will retain their names and will continue conducting business as usual. Jerry Jendusa, Emteq’s chief executive officer, said, "This partnership provides us with an opportunity to offer a greater realm of products and services that compliments our current product offering, and we will be working together, with CTI, toward common goals in customer and operational excellence in the worldwide aviation industry."
Ed Buttrey, president of CTI, said, "Emteq proves to be the ideal partner in the avionics business. They offer operations, people and processes which provide a level of synergy with our current operations and manufacturing and assembly capabilities to further enhance the growth of CTI in the aerospace and military industry." Buttrey will retain all responsibilities as the president of CTI, and Jendusa will continue his role of CEO of Emteq. The two businesses will collectively be involved customer relations, strategic growth plans and process improvements in growing the businesses and their employees.
DRS to be acquired by Italian company
DRS Technologies Inc. has signed a definitive agreement to be acquired by Finmeccanica, S.p.A. of Rome, Italy, for $5.2 billion. DRS is the parent company of DRS Power & Control Technologies Inc. in Milwaukee at 4265 N. 30th St. The Milwaukee plant was formerly owned by Cutler-Hammer Manufacturing Co., which was acquired by Eaton Corp. and then DRS in 2002. Finmeccanica will acquire 100 percent of DRS stock for $81 per share in cash.
The boards of directors of Finmeccanica and DRS each have approved the terms of the agreement. DRS will operate as a wholly-owned subsidiary, maintaining its current management and headquarters in Parsippany, N.J. DRS’ dramatic growth over the past five years and the premium provided through this acquisition will provide attractive returns for our stockholders," said Mark Newman, chairman of the board, president and chief executive officer of DRS. "This investment in DRS – with an increased emphasis on research and development – will mean the combined company will be able to compete for and win additional contracts around the world, accelerating growth and expanding opportunities at our facilities in the U.S.
