ELGIN, IL — The Middleby Corp., a leading global manufacturer of equipment for commercial foodservice, residential kitchens and food processing industries, announced plans to create a standalone public company for its food processing business. The move, which was the result of a portfolio review conducted earlier this year, will create two independent companies: The Middleby Corp. (Middleby RemainCo) and Middleby Food Processing. The separation will be executed through a tax-free spin-off, with an expected completion date of early 2026.
“Today’s announcement is the result of a comprehensive review of our business portfolio over the past several quarters and is an important milestone in our work to unlock Middleby’s full value potential,” said Tim FitzGerald, the CEO of Middleby. “Our team has successfully built a premier food processing business with necessary scale to take this next strategic step, enabling us to best position each of these highly successful businesses.”
The separation of the food processing business is expected to:
– Enable heightened strategic focus at each standalone entity
– Create market-leading businesses, recognized as technology-driven product innovators in their respective industries
– Enable food processing to be valued in-line with key peers
– Allow each standalone entity to implement an optimized capital structure and capital allocation policy, supporting growth opportunities for their respective businesses
– Create financial flexibility to pursue optimal growth strategies throughout investment cycles
– Enhance financial and strategic impact of M&A for each business
– Focused boards of directors and management teams with deep domain expertise
“As an independent company, Middleby Food Processing will become an even more focused and scaled entity, with best-in-class solutions serving attractive markets supported by favorable industry trends,” FitzGerald said. “Significant potential for growth exists organically and through continued strategic M&A, with a robust pipeline of existing opportunities. We believe this separation will deliver benefits for our customers and team members, all while creating significant long-term value for our shareholders.”
Middleby Food Processing will enter the market with category-leading brands and a synergistic portfolio of end-to-end solutions for industrial protein, bakery and snack processors. The standalone company will leverage existing relationships with industrial customers, focusing on full-line solutions, further expansion into adjacent markets, and the launch of new product innovations. Additionally, Middleby Food Processing’s strong M&A pipeline supports a significant growth opportunity and ability to scale quickly.
“As an independent company, Middleby Food Processing will become an even more focused and scaled entity, with best-in-class solutions serving attractive markets supported by favorable industry trends.” — Tim FitzGerald | CEO | The Middleby Corp.
Following the completion of the separation, Middleby RemainCo will exclusively specialize in kitchen equipment markets across commercial and residential customers, with a focus on driving organic growth of its portfolio.
“With a sharpened focus, we expect Middleby RemainCo to extend our market leadership in commercial foodservice and residential kitchens and fully capitalize on our synergistic portfolio of product innovations and premium brands as we further expand our top-tier margins and continue to grow our cash generation,” FitzGerald said.
