Press release
Middleby to Sell 51% Stake in Residential Kitchen Business to 26North in Transaction Valuing the Business at $885 Million
Transforms Middleby into a Pure-Play Leader in Commercial Foodservice Equipment Following the Announced Spin-off of Food Processing Approximately $540
About this update from The Middleby Corporation
[{"type":"text","content":"\nTransforms Middleby into a Pure-Play Leader in Commercial Foodservice Equipment Following the Announced Spin-off of Food Processing\n\nApproximately $540 million of Cash Proceeds Available to Repurchase Shares and Optimize Capital Structure Ahead of Food Processing Spin-off\n\nTransaction is the Culmination of Middleby Board of Directors’ Strategic Review of Business Portfolio in Order to Maximize Shareholder Value\n\nConference Call and Webcast to Discuss Announcement at 8:30 a.m. Eastern Time Today\n\n ELGIN, Ill.--(BUSINESS WIRE)--\nThe Middleby Corporation (“Middleby”) (NASDAQ: MIDD) today announced entry into a definitive agreement under which it will sell a 51% stake in its Residential Kitchen business to affiliates of 26North Partners LP (“26North”) in a transaction valuing Residential Kitchen at $885 million. Following this transaction, Middleby will own a 49% non-controlling interest in a new standalone joint venture holding the Residential Kitchen business, while receiving upfront cash proceeds of approximately $540 million and holding a $135 million seller note provided to the joint venture.\n\nThe Residential Kitchen business brings together a collection of market-leading, premium residential equipment brands, including Viking, AGA Rangemaster, La Cornue, Kamado Joe, Marvel, Novy and U-Line. This transaction, along with the previously announced spin-off of the Food Processing business that is expected to be completed in H1 2026, marks a significant milestone in Middleby’s transformation into a pure-play commercial foodservice leader.\n\nAs a pure-play commercial foodservice company, Middleby is positioned for higher growth as a leader in automation and innovation, with a comprehensive portfolio of leading commercial foodservice products poised to address attractive market opportunities. Commercial foodservice is focused on delivering customer solutions around labor savings, reducing food costs, and maximizing kitchen efficiencies, while entering new growth markets in ice and beverage.\n\nAs a standalone company, the commercial foodservice platform has an attractive, best-in-class financial profile with 2024 annual revenue of $2.38 billion, $654 million in Adjusted EBITDA and an Adjusted EBITDA Margin above 27%.\n\nManagement Comments\n\n“Today’s announcement is a definitive step in the evolution of Middleby” said T...