The Middleby Corporation has agreed to acquire foodservice equipment manufacturer Welbilt, in an all-stock transaction valued at $4.3 billion.
Welbilt provides chefs, premier chain operations and independents with food equipment, beverage dispensing and refrigeration solutions under brands such as Cleveland, Frymaster, Kolpak and Multiplex.
The deal will enhance the Middleby Commercial Foodservice platform with a portfolio of products, brands and technologies.
The combined company is said to have approximately $3.7 billion in combined 2020 sales, of which 73% will come from the commercial foodservice segment.
Headquartered in Florida, Welbilt operates 19 manufacturing facilities across the Americas, Europe and Asia. With the acquisition, Middleby will expand its international operations, as well as accelerate its R&D and investment into value-added technologies including ventless cooking, controls, automation and connectivity.
Upon completion, Middleyby shareholders will own approximately 76% and Welbilt shareholders will own approximately 24% of the combined company.
Middleyby has completed over 20 acquisitions since 2018 including Wild Goose Filling and Deutsche Beverage Technology.
“Today’s announcement represents a milestone event for Middleby, Welbilt and the Commercial Foodservice Equipment industry,” said Middleby CEO, Timothy FitzGerald.
“The combination of our two great companies creates a leading player with a comprehensive product line, global footprint and advanced technologies and solutions that are well positioned to serve our rapidly changing customer needs and capitalise on emerging industry trends.”
William Johnson, CEO of Welbilt, said: “We are pleased to combine with Middleby to offer our customers a broad and innovative portfolio of products and technologies. This transaction will allow Welbilt to accelerate our strategic development and represents an outstanding opportunity for Welbilt shareholders to realise an attractive value and participate in the future value creation of the combined organisation.”
The deal is expected to close in late 2021, subject to customary closing conditions and regulatory shareholder approval.
© FoodBev Media Ltd 2020
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