Middleby Corporation has signed an acquisition deal to take over the runnings of Cooking Solutions Group (CSG), which is part of Standex’s Food Service Equipment Group (FSEG).
Upon the closing of the definitive agreement to buy the group, Middleby will pay Standex a cash purchase price of $105m, subject to post-closing adjustments.
The closing of the transaction is subject to customary conditions, including regulatory approvals.
CSG includes APW Wyott, Bakers Pride, Tri-Star, BKI, Barbecue King and Ultrafryer brands, and serves directly and via dealers and distributors the food service, convenience store, and supermarket end markets.
In fiscal year 2018, CSG net revenues were $97.9m, which represents approximately 25% of FSEG segment net revenues, or approximately 10% of Standex’s overall net revenues for the same period.
The business has been treated as a discontinued operation for financial reporting purposes since the first quarter of fiscal year 2019.
David Dunbar, Standex president and CEO, said: “After a thorough competitive process, we are pleased to announce that our Cooking Solutions Group will be sold to The Middleby Corporation.
The firm added that it believes the sale was in the best interest of CSG employees, customers and shareholders, who will now be served by Middleby.
Dunbar continued: “We believe Middleby is well-placed to enable the CSG business to grow and reach its strategic potential.
“In support of our strategic vision to become a best-in-class operating company, Standex will deploy the proceeds from the sale according to our capital allocation model to grow our strategic platforms, drive enhanced profitability and create value for our shareholders.”
Standex International Corporation is a global, multi-industry manufacturer in five broad business segments: Food Service Equipment, Engraving, Engineering Technologies, Electronics, and Hydraulics.