City company acquired for £58 million

Lincoln-based catering equipment manufacturer Lincat will be acquired by the UK arm of US kitchen giant Middleby in a deal worth £58 million.

Lincat, based on Whisby Road, will be acquired by Warrington-headquartered Middleby UK, the British arm of the Middleby Corp, headquartered in Illinois, US.

Under the terms of the acquisition, Lincat Shareholders will receive 1,050 pence in cash for each share, valuing the company at about £58 million.

Lincat’s directors said they consider the terms of the acquisition to be “fair and reasonable so far as Lincat shareholders are concerned”.

Alan Schroeder, chairman of Lincat, said: “Lincat will provide Middleby with a significant platform in the UK whilst Middleby’s diverse geographic presence will provide Lincat with increased access to overseas markets.”

Selim Bassoul, chairman and chief executive of Middleby, said: “Lincat is a leading brand in the UK foodservice industry and its broad line of products is highly complementary to Middleby’s existing portfolio.

“This acquisition will provide Middleby with a local manufacturing platform and significantly enhance our presence in the UK market.

“We believe this transaction will provide for meaningful growth opportunities for both Middleby and Lincat in the UK market as we leverage Lincat’s existing sales, service and manufacturing capabilities.”

Lincat employs around 300 people and on Wednesday reported full-year pretax profit of £5.7 million.

Shares in Lincat soared 34% following the takeover announcement to 1,025 pence during the morning.

Sources: Insider Media, Reuters