Middleby Corporation announced a definitive agreement to sell a 51% stake in its Residential Kitchen business to 26North Partners LP for $885 million.
The transaction will transform Middleby into a pure-play leader in commercial foodservice equipment.
Approximately $540 million in cash proceeds will be available for share repurchase and optimizing capital structure ahead of the Food Processing spin-off.
Strategic Transaction
Sale of stake in Residential Kitchen business to enhance Middleby's position in the commercial foodservice sector.
Cash Proceeds
Middleby to receive $540 million in upfront cash proceeds from the transaction.
Future Ventures
The move aligns with Middleby's strategy of focusing on commercial foodservice equipment and growth opportunities.
- The sale will enable Middleby to concentrate on its core commercial foodservice segment, positioning it for higher growth and innovation.
- With a comprehensive portfolio of leading commercial foodservice products, Middleby aims to capitalize on market opportunities and drive efficiencies.
The sale of the stake in the Residential Kitchen business, alongside the upcoming spin-off of the Food Processing segment, signifies a strategic transformation for Middleby Corporation towards a pure-play commercial foodservice focus.