Manitowoc's newest lattice-boom crawler cranes

Asset manager Relational Investors LLC has acquired 8.52% ownership of Manitowoc Co Inc and is looking to split the manufacturer of industrial cranes and commercial foodservice equipment into separate companies.

The activist investor says Manitowoc "consists of two, yet incongruent, businesses (with materially differing operating metrics and cyclical characteristics ) which we're convinced causes a perpetual discount in the share price".

Principals of Relational Investors made their points with Manitowoc management in January and seek further engagement. "To date, the board of directors of the company has declined our request for a meeting," the investor says in a filing with the US Securities and Exchange Commission.

Manitowoc management acknowledges the filing. "As an organisation, we are committed to acting in the best interest of the company and all of its stakeholders," says Glen Tellock, chairman and chief executive officer. "As part of our regular evaluation of the company's enterprise-wide strategic imperatives to drive long-term shareholder value, we will continue to consider and review Relational Investors' suggestions."

The crane business accounted for 62% of Manitowoc's 2013 sales, with USD2.51 billion. The provider of engineered lift solutions designs, manufactures and distributes crawler-mounted lattice-boom cranes, top-slewing and self-erecting tower cranes, mobile telescopic cranes and telescopic boom trucks. Brands include Manitowoc, Grove, Potain, National and Shuttlelift.

Manitowoc reports profit of USD141.8 million on 2013 sales of USD4.05 billion. That compares to profit of USD101.7 million on 2012 sales of USD3.91 billion. As of 31 December, the Manitowoc-based company had approximately 13,400 employees.

For Relational Investors and its 11 related partnership funds, the filing lists 29 separate purchases of Manitowoc common stock on 9 May and another 419 purchases from 16-26 June.

The privately owned San Diego, California-based asset management firm and registered investment adviser was founded in 1996 and, among others, represents large pension funds.