PUBLISHER'S VIEWPOINT
March 2001
M&A Activity Continues

It has become a tradition for me to recap the past year’s major merger and acquisition activity in the equipment and supplies industry. Our annual “Product Evaluations Guide” seems a good spot for such a list.

Frankly, I’m surprised by the amount of activity in 2000. Declines in stock market values usually have a negative impact on deals. But it’s clear that the urge to merge remains strong.

As we’ve said before, much M&A activity is a product of business lifecycle forces. Many E&S businesses at all levels were founded in the 10 years following World War II. Most of these have reached the third generation, and families often need to cash out. The strong market for E&S during the past decade has boosted the value of many E&S businesses. For those acquiring, seldom have so many high-value businesses become available.

The following list is by no means complete, but we have tried to record the major deals of the year. Acquiring companies are indicated in boldface. And thank you, Brad Parcells and MAFSI, for providing us with a synopsis of the year’s activity.

Manufacturers:

• Aladdin Temp-Rite/Enodis, Cres Cor, SaniServ:
  Various parts of  Seco Products

• Ali Group:
  Bi-Line Conveyors (by Champion)
  Moffat Group (New Zealand)
  Washtech Ltd. (Austrailia)

• Carlisle FoodService Products:
  Dura-Ware Co.
  Toppo Mfg.

• Enodis:
  Jackson MSC (from Ecolab)
  Merrychef (UK)

• Ingersoll-Rand Co.:
  Hussmann Corp.

• Lakeside Mfg.:
  Alliance Mfg.

• Manitowoc Co.:
  Harford Duracool
  Multiplex Co.

• Oneida Ltd.:
  Delco Int'l.
  Viners
  Sakura Inc.

• Sensitech:
  Ryan Instruments

• United Technologies/Carrier Corp.:
  Specialty Equipment Cos.

Dealers/Distributors:

• McLane Inc.:
  AmeriServe Food Distribution

• North Texas Opportunity Fund

• PrimeSource Foodservice Equipment:
  Equipment Division of AmeriServe Food Distribution

• Royal Ahold/US Foodservice:
  PYA/Monarch (from Sara Lee)

• TriMark, formerly Foodserv Equipment & Supply Inc.:
  Robert Clark Inc.
  Hockenbergs

• Strategic Equipment & Supply Corp:
  Beltram Inc.
  Duray Inc.
  W.H. Reynolds

• World Dryer:
  Nova Hand Dryers

Cheers,

Robin Ashton
Publisher