(Reuters) – Diversified manufacturer Manitowoc Co (MTW.N) said it agreed to sell its ice business to an affiliate of Warburg Pincus for $160 million to meet anti-trust requirements related to its acquisition of Enodis Ltd.
In a regulatory filing, Manitowoc said it will transfer all of the outstanding equity securities of Scotsman Group LLC, CastelMAC S.p.A.,and Frimont S.p.A, together with certain real property of another subsidiary used in the ice business.
107-year Manitowoc was required to divest the ice business to get clearance from the U.S. Department of Justice and the European Commission for its $2.7 billion buy of Enodis Plc in October last year.
Earlier this month, Manitowoc had warned that it might violate certain debt covenants if it failed to get a higher bid for its Enodis ice business, which was put on the block to pay down part of a huge debt load, beside antitrust requirements.
Shares of the the Wisconsin-based company fell more than 6 percent to $4.52 in morning trade on the New York Stock Exchange. (Reporting by Biswarup Gooptu in Bangalore; Editing by Savio D’Souza)