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Middleby ends the year with $385m cooking equipment acquisition

Middleby

The Middleby Corporation is set to end the year in the only way it knows how – by splashing $385m on the company that owns the Kamado Joe brand.

The manufacturer has agreed a deal to take over Masterbuilt Holdings LLC, which specialises in outdoor residential cooking through Kamado Joe as well as the Masterbuilt brand.

Kamado Joe is also used by a lot of commercial hospitality operators for outside cooking applications.

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Masterbuilt is headquartered in the Atlanta area and is expected to generate $250m in net sales this year.

Tim FitzGerald, CEO of Middleby, said the company is aiming to penetrate a residential outdoor market that has gained momentum over the past few years.

“The addition of Kamado Joe and Masterbuilt expands our offerings in this large and growing category, complementing our Lynx, Viking, Josper and EVO residential outdoor cooking brands.

“Consumers are seeking products to enhance and simplify the backyard grilling experience. The Kamado Joe and Masterbuilt brands have grown rapidly as the company’s new products have been adopted by the next generation of outdoor enthusiasts.

“Charcoal as an energy source for cooking continues to gain popularity due to its flavor profile, availability, and affordability. Kamado Joe and Masterbuilt are well positioned to capture the charcoal trend.”

Since its inception in 1973, Kamado Joe and Masterbuilt have been at the forefront of the outdoor cooking market.

Today the company focuses on innovative alternative fuel products as part of its premium offering.

Middleby will acquire the business from Dominus Capital, with the transaction funded in cash and financed under its existing senior credit facility.

Mr FitzGerald said the acquisition will significantly expand its presence in the outdoor cooking market.

“The combination provides for further growth opportunities at Kamado Joe and Masterbuilt, as we accelerate product innovation, expand distribution, and leverage shared manufacturing and supply chain capabilities.”

Tags : acquisitionsKamado JoeMasterbuiltMiddleby Corporation
Andrew Seymour

The author Andrew Seymour

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