Middleby to sell 51% stake in Residential Kitchen business for $540M

Middleby (MIDD) entered into a definitive agreement under which it will sell a 51% stake in its Residential Kitchen business to affiliates of 26North Partners in a transaction valuing Residential Kitchen at $885M. Following this transaction, Middleby will own a 49% non-controlling interest in a new standalone joint venture holding the Residential Kitchen business, while receiving upfront cash proceeds of approximately $540M and holding a $135M seller note provided to the joint venture. This transaction, along with the spin-off of the Food Processing business expected to be completed in H1 2026, marks a milestone in Middleby’s transformation into a pure-play commercial foodservice leader. As a standalone company, the commercial foodservice platform has a financial profile with 2024 annual revenue of $2.38B, $654M in Adjusted EBITDA and an Adjusted EBITDA Margin above 27%. Middleby will retain a noncontrolling common equity stake in the standalone Residential Kitchen business. Residential Kitchen’s financial results will be reported as discontinued operations as of Q4 2025 and reported as income from minority interest upon closing. As part of the transaction, Residential Kitchen will be structured as a joint venture between Middleby and 26North. The transaction will be funded by fully committed third-party debt financing, a $135M seller note provided by Middleby to the joint venture, a preferred equity contribution by 26North and rollover equity by Middleby. The transaction is expected to close in Q1 of calendar year 2026, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.