Jan 29 (Reuters) - Crane maker Manitowoc Co Inc said it would spinoff its high-margin foodservice business into a publicly traded company, sending the company’s shares up 8 percent in extended trading.
Activist investors Carl Icahn and Ralph Whitworth’s Relational Investors had been pushing the company over the past few months to split its cranes and foodservice businesses.
The company’s cranes business generated revenue of $2.3 billion in the year ended Dec. 31, while the foodservice business earned revenue of $1.6 billion, Manitowoc said.
The company expects the spinoff to be completed in the first quarter of 2016.
Manitowoc also reported a fourth-quarter profit of 27 cents per share, lower than the analysts’ average estimate of 32 cents per share, according to Thomson Reuters I/B/E/S, hurt by higher discounts and a strong dollar. (Reporting by Sayantani Ghosh in Bengaluru; Editing by Savio D’Souza)