The brokers and investment bankers that help equipment and supplies companies buy and sell other companies had a very busy 2012. Foodservice Equipment Reports and our forecasting partner John Muldowney, v.p.-marketing at Alto-Shaam, counted 22 transactions completed or announced during the year, more than double the 10 recorded in ’11.
A number of factors drove the dramatic increase in M&A activity last year. A major impetus was the anticipated increase in the capital gains tax at the federal level. Capital gains taxes did indeed rise from 15% to 20% in the American Taxpayer Relief Act. But many looking to sell were concerned such gains could be treated as regular income, pushing the tax rate to close to 40%.
Business life-cycle factors continue to be an issue in foodservice E&S. Many companies are into their third generation and the dispersion of ownership often becomes a problem. The Great Recession limited the ability to sell as business values plummeted. Last year, the market finally recovered somewhat. Not least, record low-interest rates helped grease many of the wheels.
Our recap of notable transactions follows. Most of the deals are outright acquisitions, but some are mergers. In the latter case, we list the two companies in alphabetical order.
E&S Manufacturer Transactions 2012
Buyer Acquired
Component Hardware JHL Enterprises
Dispensing Dynamics Colman Group/San Jamar
Vollrath Co. Polarware/Stoelting
Standex Foodservice Giorik SpA (minority share)
Cooper Atkins Docutemp Wireless
Ali Group Scotsman Industries
Middleby Corp. Nieco Corp.
Candle Lamp Sterno Group
Plymold/Foldcraft Waymar/J.H. Carr
Diversified Foodservice Franklin Machine Products
Vollrath Co. Acryfab Inc.
Unified Brands Power Soak Systems
Middleby Corp. Viking Range
E&S Distributor/Dealer Transactions 2012
Buyer Acquired
Tundra Specialties Superior Commercial Kitchens
Direct South Citisco Food Service Equip.
H. Weiss Co. BRC Commercial Kitchens
Premium Supply Tassone Equipment
TriMark USA Century Concepts
TriMark USA Federighi Design
Mission Restaurant Supply Metroplex Restaurant Equip.
Chefs’ Toys Star Restaurant E&S
Kittredge Equipment Northeast Food Service E&S
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