The Middleby Corporation
) has been experiencing splendid inorganic growth for about a
year riding on its strategic acquisitions. In the last 12 months,
Middleby has acquired Celfrost, Spooner Vicars, Viking and Nieco.
Acquisitions contributed roughly $71.8 million in revenues or
27.9% of the revenue growth in the third quarter of 2013. The
company expects contribution from acquisitions to increase in the
Adding to the list, on Dec 19, 2013, the company acquired
California-based Automatic Bar Controls, Inc. for an undisclosed
amount. With average annual revenues of roughly $30.0 million,
Automatic Bar Controls offers beverage dispensing systems and
food sauce dispensing systems to cater to the foodservice
industry. The products serve refrigerated and non-refrigerated
toppings, pizza sauces, salad dressings, condiments, oils and
heated cheese. Since the acquisition, Middleby's share price has
increased 7.6% to $247.07 on Jan 8, 2014.
More recently, the company acquired the assets of Everett,
MA-based Market Forge Industries Inc. For over 110 years, Market
Forge has been providing steam cooking equipment to the
With annual revenues of roughly $15 million, Market Forge
deals in products including steamers, kettles, boilers, skillets,
ovens and ranges. With the acquisition, Middleby is expected to
boost its presence in the steam cooking industry. The company
intends to make use of its strong distribution network to expand
the sales for Market Forge.
However, a recent announcement by
Darden Restaurants Inc.
) to separate its underperforming Red Lobster business (either
through spin-off or sale of the segment)has potential negatives
on Middleby. With the divestiture, the customer base of Middleby
is likely to reduce, thus impacting its revenues negatively.
Middleby currently has a Zacks Rank #1 (Strong Buy). Some
other stocks in the industry worth a watch include
Altra Industrial Motion Corp.
Flow International Corp.
). Both the stocks hold a Zacks Rank #2 (Buy).
ALTRA HOLDINGS (AIMC): Free Stock Analysis
DARDEN RESTRNT (DRI): Free Stock Analysis
FLOW INTL CORP (FLOW): Free Stock Analysis
MIDDLEBY CORP (MIDD): Free Stock Analysis
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