Foodservice, food processing, and kitchen provider, The Middleby Corp (MIDD), has acquired Colussi Ermes to further bolster its automation food safety offerings. Colussi Ermes provides automated washing solutions in food processing and generates about $50 million in annual sales.
Tim Fitzgerald, the CEO of Middleby, commented, “The Colussi washing systems complement our existing food processing solutions and are incorporated in many of our current customer projects. This acquisition will support a significant opportunity for collaboration with brands presently in our portfolio, to deliver best-in-class, full-line solutions to our customers.”
Notably, this strategic move builds on the company’s string of acquisitions in recent months. Earlier this month, Middleby strengthened its packaging equipment solutions with the acquisition of CP Packaging, which provides high-speed vacuum packaging and fetches around $15 million in annual revenue.
Last month, Middleby scooped up Icetro and Proxaut. Icetro provides ice, slush, and soft serve equipment with $40 million in annual sales. South Korea-headquartered Icetro helped Middleby expand its manufacturing abilities in Asia while also being able to cater to its customers in the region.
Italy-based Proxaut provides auto-guided vehicles (AGVs) catering to food and industrial processing companies. Proxaut’s solutions help improve workflow, and this acquisition further builds on Middleby’s 2018 acquisition of Vemac.
MIDD’s Upcoming Q2
Middleby is expected to report its second-quarter numbers on August 4.
The company has outperformed earnings estimates over the last two consecutive quarters. On August 4, the Street expects the company to report earnings per share (EPS) of $2.16. In the year-ago period, it posted an EPS of $2.11 versus the Street’s expectations of $2.08.
Analysts’ Take on MIDD
In the meantime, the Street is favorable towards Middleby, with a Strong Buy consensus rating and an average price target of $165.33. This implies a 17.14% potential upside on top of the nearly 9% price gain over the past month.
Closing Note
Middleby’s recent acquisitions are geared towards efficiencies and driving operational benefits. In the meantime, Q2 numbers on August 4 remain a key event to keep an eye on.
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