Middleby Corp. to acquire Welbilt Inc.

ELGIN - Middleby Corp. said it has agreed to acquire Welbilt Inc., a maker of culinary equipment and solutions, in an all-stock transaction.

Under the terms of the agreement, Welbilt shareholders will receive a fixed exchange ratio of 0.124 shares of Middleby common stock for each share of Welbilt common stock, with an implied enterprise value of $4.3 billion.

The transaction will bring together two complementary businesses, enhancing the Middleby Commercial Foodservice platform with an attractive portfolio of products, brands and technologies, the company said.

Based in New Port Richey, Florida, Welbilt's product brands includes Cleveland, Convotherm, Frymaster and Manitowoc. These product brands are supported by Welbilt's three service brands: KitchenCare, its aftermarket parts and service brand; FitKitchen, its fully integrated kitchen systems brand; and KitchenConnect, its cloud-based digital platform brand.

The combined company will have about $3.7 billion in combined 2020 sales, 73% of which will come from the commercial food service segment, Middleby said.

"The acquisition of Welbilt is a transformational opportunity for Middleby and a compelling combination that will benefit all of our stakeholders," said Middleby CEO Timothy FitzGerald.