Middleby Announces Intent to Separate Food Processing Business into a Standalone Public Company, Creating Independent Innovative Leaders in the Kitchen Equipment and Food Processing Industries
Middleby (NASDAQ: MIDD) announced its plan to separate its food processing business into a standalone public company by early 2026. The new company, Middleby Food Processing, will focus on industrial protein, bakery, and snack processors, aiming for significant growth and market leadership.
The separation will be achieved through a tax-free spin-off, enhancing strategic focus and financial flexibility for both entities. Middleby RemainCo will continue to drive growth in commercial foodservice and residential kitchens, leveraging its innovative product portfolio and market leadership.
Middleby Food Processing reported $731 million in revenue and $1871 million in Adjusted EBITDA for 2024, with an EBITDA margin above 25%. Middleby RemainCo's commercial foodservice business achieved $2,419 million in revenue and $6641 million in Adjusted EBITDA, with an EBITDA margin over 27%, while its residential kitchen business saw $725 million in revenue and $741 million in Adjusted EBITDA, with a 10% margin.
The spin-off aims to unlock shareholder value, optimize capital structures, and enhance M&A opportunities. The separation is subject to customary conditions and final board approval.
Middleby (NASDAQ: MIDD) ha annunciato il suo piano di separare la sua attività di elaborazione alimentare in una società pubblica autonoma entro l'inizio del 2026. La nuova società, Middleby Food Processing, si concentrerà sui processori di proteine industriali, panificazione e snack, puntando a una crescita significativa e alla leadership di mercato.
La separazione sarà realizzata attraverso uno spin-off senza tasse, migliorando il focus strategico e la flessibilità finanziaria per entrambe le entità. Middleby RemainCo continuerà a guidare la crescita nel settore della ristorazione commerciale e nelle cucine residenziali, sfruttando il suo portafoglio di prodotti innovativi e la leadership di mercato.
Middleby Food Processing ha riportato 731 milioni di dollari di fatturato e 1871 milioni di dollari di EBITDA rettificato per il 2024, con un margine EBITDA superiore al 25%. L'attività di ristorazione commerciale di Middleby RemainCo ha raggiunto 2.419 milioni di dollari di fatturato e 6641 milioni di dollari di EBITDA rettificato, con un margine EBITDA superiore al 27%, mentre l'attività di cucina residenziale ha visto 725 milioni di dollari di fatturato e 741 milioni di dollari di EBITDA rettificato, con un margine del 10%.
Lo spin-off mira a sbloccare il valore per gli azionisti, ottimizzare le strutture di capitale e migliorare le opportunità di fusioni e acquisizioni. La separazione è soggetta a condizioni consuete e all'approvazione finale del consiglio.
Middleby (NASDAQ: MIDD) anunció su plan para separar su negocio de procesamiento de alimentos en una empresa pública independiente para principios de 2026. La nueva empresa, Middleby Food Processing, se centrará en procesadores de proteínas industriales, panadería y snacks, con el objetivo de un crecimiento significativo y liderazgo en el mercado.
La separación se llevará a cabo mediante una escisión libre de impuestos, mejorando el enfoque estratégico y la flexibilidad financiera para ambas entidades. Middleby RemainCo continuará impulsando el crecimiento en el servicio de alimentos comerciales y en cocinas residenciales, aprovechando su innovador portafolio de productos y su liderazgo en el mercado.
Middleby Food Processing reportó 731 millones de dólares en ingresos y 1871 millones de dólares en EBITDA ajustado para 2024, con un margen de EBITDA superior al 25%. El negocio de servicio de alimentos comerciales de Middleby RemainCo alcanzó 2,419 millones de dólares en ingresos y 6641 millones de dólares en EBITDA ajustado, con un margen de EBITDA superior al 27%, mientras que su negocio de cocina residencial vio 725 millones de dólares en ingresos y 741 millones de dólares en EBITDA ajustado, con un margen del 10%.
La escisión tiene como objetivo desbloquear el valor para los accionistas, optimizar las estructuras de capital y mejorar las oportunidades de fusiones y adquisiciones. La separación está sujeta a condiciones habituales y a la aprobación final de la junta.
Middleby (NASDAQ: MIDD)는 2026년 초까지 식품 가공 사업을 독립된 공개 회사로 분리할 계획을 발표했습니다. 새로운 회사인 Middleby Food Processing은 산업용 단백질, 제과 및 스낵 가공업체에 집중하여 상당한 성장과 시장 선도 목표를 세우고 있습니다.
이번 분리는 세금이 없는 스핀오프를 통해 이루어지며, 두 개체 모두의 전략적 초점과 재정적 유연성을 향상시킬 것입니다. Middleby RemainCo는 혁신적인 제품 포트폴리오와 시장 리더십을 활용하여 상업 음식 서비스 및 주거용 주방에서 성장을 계속 이끌 것입니다.
Middleby Food Processing은 2024년 매출 7억 3100만 달러와 조정된 EBITDA 18억 7100만 달러를 보고했으며, EBITDA 마진은 25% 이상입니다. Middleby RemainCo의 상업 음식 서비스 사업은 24억 1900만 달러의 매출과 66억 4100만 달러의 조정된 EBITDA를 기록했으며, EBITDA 마진은 27% 이상입니다. 주거용 주방 사업은 7억 2500만 달러의 매출과 7억 4100만 달러의 조정된 EBITDA를 기록하며, 10%의 마진을 보였습니다.
이번 스핀오프는 주주 가치를 극대화하고 자본 구조를 최적화하며 M&A 기회를 향상시키는 것을 목표로 하고 있습니다. 분리는 일반적인 조건과 최종 이사회 승인을 조건으로 합니다.
Middleby (NASDAQ: MIDD) a annoncé son plan de séparer son activité de transformation alimentaire en une société publique autonome d'ici début 2026. La nouvelle société, Middleby Food Processing, se concentrera sur les transformateurs de protéines industrielles, de boulangerie et de snacks, visant une croissance significative et un leadership sur le marché.
La séparation sera réalisée par le biais d'une scission sans impôt, améliorant ainsi l'accent stratégique et la flexibilité financière pour les deux entités. Middleby RemainCo continuera à stimuler la croissance dans le secteur de la restauration commerciale et des cuisines résidentielles, tirant parti de son portefeuille de produits innovants et de son leadership sur le marché.
Middleby Food Processing a rapporté 731 millions de dollars de revenus et 1,871 million de dollars d'EBITDA ajusté pour 2024, avec une marge EBITDA supérieure à 25%. L'activité de restauration commerciale de Middleby RemainCo a atteint 2,419 millions de dollars de revenus et 6,641 millions de dollars d'EBITDA ajusté, avec une marge EBITDA supérieure à 27%, tandis que son activité de cuisine résidentielle a enregistré 725 millions de dollars de revenus et 741 millions de dollars d'EBITDA ajusté, avec une marge de 10%.
La scission vise à débloquer la valeur pour les actionnaires, à optimiser les structures de capital et à améliorer les opportunités de fusions et acquisitions. La séparation est soumise à des conditions habituelles et à l'approbation finale du conseil d'administration.
Middleby (NASDAQ: MIDD) hat seinen Plan angekündigt, sein Geschäft mit Lebensmittelverarbeitung bis Anfang 2026 in ein eigenständiges börsennotiertes Unternehmen zu trennen. Das neue Unternehmen, Middleby Food Processing, wird sich auf industrielle Proteine, Bäckerei und Snackverarbeiter konzentrieren und strebt signifikantes Wachstum und Marktführerschaft an.
Die Trennung erfolgt durch einen steuerfreien Spin-off, der den strategischen Fokus und die finanzielle Flexibilität für beide Einheiten verbessern wird. Middleby RemainCo wird weiterhin das Wachstum im kommerziellen Lebensmittelservice und in Wohnküchen vorantreiben und dabei sein innovatives Produktportfolio und seine Marktführerschaft nutzen.
Middleby Food Processing berichtete für 2024 einen Umsatz von 731 Millionen Dollar und ein bereinigtes EBITDA von 1,871 Millionen Dollar, mit einer EBITDA-Marge von über 25%. Das kommerzielle Lebensmittelservicegeschäft von Middleby RemainCo erzielte einen Umsatz von 2,419 Millionen Dollar und ein bereinigtes EBITDA von 6,641 Millionen Dollar, mit einer EBITDA-Marge von über 27%, während das Geschäft mit Wohnküchen einen Umsatz von 725 Millionen Dollar und ein bereinigtes EBITDA von 741 Millionen Dollar mit einer Marge von 10% verzeichnete.
Der Spin-off zielt darauf ab, den Aktionärswert freizusetzen, die Kapitalstrukturen zu optimieren und M&A-Möglichkeiten zu verbessern. Die Trennung unterliegt den üblichen Bedingungen und der endgültigen Genehmigung des Vorstands.
- Separation creates two focused and innovative companies.
- Tax-free spin-off enhances strategic focus and financial flexibility.
- Middleby Food Processing reported $731M revenue and $1871M Adjusted EBITDA in 2024.
- Middleby RemainCo's commercial foodservice business achieved $2,419M revenue and $6641M Adjusted EBITDA.
- Middleby RemainCo's residential kitchen business reported $725M revenue and $741M Adjusted EBITDA.
- No assurance that the separation transaction will occur or its terms.
Insights
Middleby's announced separation of its food processing business represents a significant strategic pivot that could substantially unlock shareholder value through more appropriate market valuations for each business segment. The transaction's structure as a tax-free spin-off expected by early 2026 provides a clear pathway to create two focused industry leaders without immediate tax implications for shareholders.
Looking at the financial fundamentals, the separation reveals striking profitability differences across Middleby's portfolio. The food processing segment generated
The extended timeline for completion (early 2026) suggests complex operational separation challenges, including disentangling shared services, establishing independent supply chains, and creating standalone IT infrastructure. This methodical approach reduces execution risk but creates a prolonged period of potential organizational distraction.
For investors, this separation creates distinct investment opportunities with different risk-reward profiles. The Food Processing entity will likely attract growth-oriented investors seeking exposure to automation trends in food manufacturing, while Middleby RemainCo presents a more mature business with strong cash flow generation and potential margin expansion through its technological innovations in commercial kitchens.
The separation strategically positions both entities to accelerate their M&A strategies within focused domains. Food Processing can pursue technology bolt-ons in adjacent processing categories without competing for capital with the equipment businesses. Meanwhile, RemainCo can extend its leadership in automation, digital technologies, and IoT solutions for commercial kitchens without diluting management attention across disparate business models.
Notably absent from the announcement is the leadership structure for the new Food Processing entity, a critical factor that will influence investor confidence in the spin-off's prospects. The success of similar industry separations suggests that early identification of leadership teams helps maintain operational momentum through the transition period.
This transaction follows a broader industry trend of conglomerates streamlining their portfolios to create more focused entities. Based on comparable spin-offs in the industrial sector, we could expect a potential combined valuation uplift of
Food Processing to be a Fast-Growing and Nimble Standalone Business with Best-in-Class Technologies for Industrial Protein, Bakery, and Snack Processors
Middleby RemainCo Well-Positioned to Drive Sustainable Growth and Margin Expansion Through Innovation Leadership and Differentiated Go-To-Market Capabilities in Commercial Foodservice and Residential Kitchens
Separation of Food Processing Expected to be Achieved Through Tax-Free Spin-Off and be Completed Early 2026
Company Separately Announces Q4 and Full-Year 2024 Financial Results and Appointment of Independent Directors to its Board
“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, Middleby CEO. “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.”
“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.” Mr. FitzGerald continued, “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.”
“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,” said Mr. FitzGerald.
The separation of Food Processing is expected to create value for all Middleby shareholders and stakeholders through the following benefits:
- Enables heightened strategic focus at each standalone entity
- Creates market-leading businesses, recognized as technology-driven product innovators in their respective industries
- Enables Food Processing to be valued in-line with key food processing peers
- Allows for each standalone entity to implement an optimized capital structure and capital allocation policy, best supporting growth opportunities for their respective businesses
- Creates financial flexibility to pursue optimal growth strategies throughout investment cycles
- Enhances financial and strategic impact of M&A for each business
- Focused boards of directors and management teams with deep domain expertise
Middleby Food Processing: Creating a Scalable Best-in-Class Business Focused Exclusively on Industrial Food Markets
Middleby Food Processing will enter the market with category-leading brands and a synergistic portfolio of best-in-class end-to-end solutions for industrial protein, bakery, and snack processors. As a standalone company, Middleby Food Processing is expected to build upon its strong track record of long-term sales growth and industry-leading margins to drive returns at or above peer levels, unlocking its full value potential.
Operating in highly attractive markets, and leveraging existing relationships with leading industrial customers, Middleby Food Processing will continue its focus on full-line solutions, further expansion into adjacent markets and launch of new product innovations to continue to bolster a best-in-class growth trajectory. Alongside its actionable organic initiatives, Middleby Food Processing’s strong M&A pipeline supports a significant growth opportunity and ability to quickly scale.
Capitalizing on ongoing growth trends, in 2024, the food processing business achieved
Middleby RemainCo: A Focused, Innovation-Driven Leader in Commercial Foodservice and Residential Kitchen Technologies
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 of industry-leading premium brands. Supported by a strong financial foundation, Middleby RemainCo expects to accelerate top-line revenues, realizing the benefits of recent and continuing investments in next generation product innovations and differentiated go-to-market capabilities. Further leveraging our scale and through realizing synergies across our businesses, Middleby RemainCo will continue delivering top-tier margins, returns and cash generation.
Middleby RemainCo will continue to build upon its market leadership in commercial foodservice, and is best positioned amongst its peers to lead future trends in automation, digital technologies and IoT, while further extending into large attractive markets such as ice and beverage. Middleby RemainCo’s residential business, through recent commercial and operational investments, is well positioned to capture the benefits from the resurgence in the residential kitchen market.
Driven by Middleby RemainCo’s unique ability to drive efficiencies and industry innovation, the kitchen equipment businesses produced strong 2024 financial results with
Transaction Details
The separation transaction is expected to be effected through a spin-off of Middleby’s food processing business, under which the stock of Food Processing, as a new independent publicly-traded company, will be distributed to Middleby’s shareholders. Middleby is targeting a completion of the separation by early 2026, subject to certain customary conditions, including, among others, final approval by Middleby’s Board of Directors and the effectiveness of appropriate filings with the Securities and Exchange Commission. The spin-off of Food Processing is expected to be tax-free for
Conference Call and Webcast
Middleby separately reported today its 2024 fourth quarter financial results. The Company has posted an investor presentation regarding its earnings results, as well as a separate presentation providing additional detail on the separation to its website and has scheduled an investor call at 8:00 a.m. Eastern Time / 7:00 a.m. Central Time to discuss its results and today’s announcement.
The conference call will be accessible through the investor relations section of the company website at www.middleby.com. If website access is not available, attendees can join the conference by dialing 1-844-481-3012, or 1-412-317-1878 for international access, and ask to join the Middleby conference call. The conference call will be available for replay from the company’s website.
Advisors
Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Middleby and Skadden, Arps, Slate, Meagher & Flom LLP is serving as its legal advisor.
About The Middleby Corporation
The Middleby Corporation is a global leader in the foodservice industry. The company develops and manufactures a broad line of solutions used in commercial foodservice, food processing, and residential kitchens. Middleby showcases its advanced solutions in the Middleby Innovation Kitchens for commercial foodservice, industrial baking and protein Innovation Centers for food processing solutions and state-of-the-art, award-winning Middleby Residential showrooms. For more information about Middleby, please visit www.middleby.com.
Forward-Looking Statements
This press release contains "forward-looking statements" subject to the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause the Company's actual results, performance or outcomes to differ materially from those expressed or implied in the forward-looking statements. The following are some of the important factors that could cause The Middleby Corporation’s (the “Company”) actual results, performance or outcomes to differ materially from those discussed in the forward-looking statements: changing market conditions; volatility in earnings resulting from goodwill impairment losses, which may occur irregularly and in varying amounts; variability in financing costs and interest rates; quarterly variations in operating results; dependence on key customers; risks associated with the Company's foreign operations, including international exposure, political risks affecting international sales, market acceptance and demand for the Company's products and the Company's ability to manage the risk associated with the exposure to foreign currency exchange rate fluctuations; the Company's ability to protect its trademarks, copyrights and other intellectual property; changing market conditions, including inflation; the impact of competitive products and pricing; the impact of announced management and organizational changes; the state of the residential construction, housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans and consumer credit; intense competition in the Company's business segments including the impact of both new and established global competitors; unfavorable tax law changes and tax authority rulings; cybersecurity attacks and other breaches in security; the continued ability to realize profitable growth through the sourcing and completion of strategic acquisitions; the timely development and market acceptance of the Company's products; the availability and cost of raw materials; the possibility that the proposed spin-off of the Company’s Food Processing business (“FP” or “FP business”) will not be consummated within the anticipated time period or at all, including as the result of regulatory, market or other factors, including the possibility that various closing conditions for the spin-off may not be satisfied; the potential disruption to our business in connection with the proposed spin-off; the potential that the FP business and the Company do not realize all of the expected benefits of the spin-off; that the spin-off may be more difficult, time consuming or costly than expected; the failure of the spin-off to qualify for the expected tax treatment; the duration and outcome of the Company’s ongoing strategic review (“Strategic Review”) with respect to its Residential Kitchen business; potential adverse effects of the Strategic Review or announcement of the proposed FP spin-off or, in each case, results thereof, including on the market price of the Company's common stock, the ability of the Company to develop and maintain relationships with personnel, customers, suppliers and others with whom it does business or the Company's business, financial condition, results of operations and financial performance; risks related to diversion of the Company’s management's attention from its ongoing business operations due to the Strategic Review and the proposed FP spin-off; and other risks detailed in the Company’s SEC filings. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date hereof and, except as required by federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(1) excluding any corporate or stand-alone company costs
View source version on businesswire.com: https://www.businesswire.com/news/home/20250225710645/en/
Investor relations inquiries:
John Joyner
VP of Investor Relations
jjoyner@middleby.com
Media inquiries:
Darcy Bretz
VP of Corporate Communications
dbretz@middleby.com
OR
Sharon Stern / Kaitlin Kikalo / Thomas Crosson
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
MIDD-Media@joelefrank.com
Source: The Middleby Corporation
FAQ
What does the Middleby (MIDD) spin-off mean for shareholders?
When will the Middleby (MIDD) spin-off be completed?
What are the financial highlights of Middleby Food Processing for 2024?
How did Middleby RemainCo perform in 2024?
What are the benefits of the Middleby (MIDD) spin-off?
