The Middleby Corporation
) recently acquired the commercial refrigeration and foodservice
products business of Gurgaon, India-based Celfrost Innovations
Pvt. Ltd. The terms of the deal were not disclosed.
The acquisition was carried out by the company's new Indian
unit, Middleby Commercial Food Innovations Pvt. Ltd. With annual
sales of roughly $20 million, Celfrost provides various cooling
and kitchen appliances. The company's products range from deep
freezers, minibars, coldrooms, water coolers, ice machines and
flakers, professional coffee machines to blenders and mixers,
oven, commercial dishwashers and cold dispensers. The products
are used in various industries including restaurants, bars,
coffee shops, hotels, ice cream & beverage, bakeries, food
retail and the healthcare segments.
Established in 2004, Celfrost works with the concept of
providing its customers the 'touch and feel' experience. In view
of the same, the company has already established 15 brand centers
across India with plans for further expansion. Celfrost has
reduced costs by manufacturing products at large scale factories,
thereby allowing it to invest more in research and development
and technological advancements.
The acquisition of Celfrost's refrigeration unit complements
Middleby's warming and cooking equipment segment. Middleby aims
to tap the growing Indian market while establishing its products.
Additionally, the company plans to expand Celfrost's product
offerings in other emerging markets to gain higher market
Middleby has been growing inorganically for the past few
quarters. In the past twelve months, Middleby acquired Viking,
Nieco and Stewart Systems. These acquisitions contributed roughly
$76.1 million or 29.3% of the revenue growth in the second
quarter of 2013. With the addition of Celfrost, we expect the
company to grow further inorganically.
Middleby currently carries a Zacks Rank #3 (Hold). Other
stocks worth a look in the industry include
Manitex International, Inc.
). While Manitex International carries a Zacks Rank #1 (Strong
Buy), Colfax Corp. and Dover Corp. carry a Zacks Rank #2
COLFAX CORP (CFX): Free Stock Analysis Report
DOVER CORP (DOV): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
MANITEX INT INC (MNTX): Free Stock Analysis
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