Middleby Explained

The Middleby Corporation
Type:Public
Industry:Commercial Cooking Equipment
Predecessor:Middleby Marshall Inc.
Location City:Elgin, Illinois
Location Country:U.S.[1]
Area Served:International
Key People:Timothy FitzGerald (CEO)[2]
Bryan Mittelman (CFO)
David Brewer (COO)
Martin M. Lindsay (treasurer)
Revenue: (2018)[3]
Net Income:US$317.15 million (2018)
Num Employees:9,778[4]

The Middleby Corporation is an American publicly traded commercial and residential cooking and industrial process equipment company based in Elgin, Illinois. The company manufactures commercial cooking equipment, industrial processing equipment, and residential appliances. The commercial cooking equipment side of Middleby does business with 97 out of the top 100 food service chains in the United States and internationally.[5] [6]

History

Portable ovens

The company was founded by Joseph Middleby and John Marshall in Chicago in 1888 as a bakery supplier. The company made custom portable ovens for the bakery industry. Middleby sold the company to Marshall in the early 1900s.[5] The company was privately held by descendants of Marshall until it was purchased by a private company in 1976.[5] The company was purchased by TMC Industries Ltd. in 1983 and changed its name to The Middleby Corporation in 1985 and moved its headquarters to Elgin, Illinois in the late 1980s.[5]

Expansion

By 1996, the company had expanded its manufacturing base overseas and had opened a manufacturing and training facility employing 190 in Santa Rosa, Laguna, the Philippines.[7]

By 2006, the company had successfully streamlined operations to an extent allowing them to close two of its seven manufacturing facilities in the United States with no loss of product lines or capacity; this was in addition to three facilities shut down in 2001 and 2002.[8] Also in the 2001 to 2006 period, the company's income yield from sales increased from about 3% to just over 10%, while its stock valuation increased by over 15-fold,[9] performance gains which were attributed to CEO Bassoul.

The Middleby Corporation was originally available for purchase on the NASDAQ over-the-counter market and became listed on the American Stock Exchange in 1988. Its first public offering came in September 1997 with a share price offering of $10 on the NASDAQ. Selim Bassoul became the CEO of Middleby in January 2001.[10]

McDonald's ice cream machines

In 2021, the company was criticized in the media for producing ice cream machines for McDonald's that were intentionally unreliable and difficult to repair as a means to drive up maintenance revenue. They were sued by the makers of an app, Kytch, that assisted with repair.[11] [12] [13]

Acquisitions

Middleby has acquired numerous businesses in the US and internationally.[5] In 1990, Middleby acquired a majority stake in Asbury Associates Inc., a Filipino manufacturer of food service equipment.[14] It increased its interest to 80% by 1991 and became the company's main export distributor internationally with the exception of Canada where Middleby already owned a distributor.[15] The same year, it established Fab-Asia, Inc., a separate unit in Manila for manufacturing of kitchen equipment for markets in Asia and the United States.[5]

Middleby initiated assimilation of MagiKitch'n brands in 2010 to their commercial appliance line.[16]

Middleby purchased TurboChef in 2008 in a deal reported to be worth $200 million.[17] It was reported by Bassoul that the purchase would strengthen the company's position as a leader in the food service equipment industry.[17] Both companies were previously competitors in food service equipment for speed cooking pizza ovens.[18]

In 2013, The Middleby Corporation purchased Viking Range for from investors Warren Stephens and Fred Carl, Jr., the latter of whom would continue at the helm of the new subsidiary.[19] [20] Middleby announced that it would incorporate its technology into Viking equipment and increase residential sales, which were approximately 1% to 2% of the company's overall sales prior to the purchase.[20] The acquisition was said to be the largest in the company's history,[10] bringing 750 employees into the company.

In July 2015, Aga Rangemaster Group, the British manufacturer of cast-iron cooking ranges was acquired for £129 million.[21]

In 2016, Middleby acquired Follett Ice in Easton, Pennsylvania.

In May 2018, Taylor Company, a manufacturer of ice cream dispensing equipment and frozen drink machines was acquired for $1 billion.[22]

In December 2021, The Middleby Corporation purchased consumer grill manufacturers Kamado Joe, Masterbuilt, and Char-Griller, which were estimated to expand the revenues of the Middleby Residential platform to more than $1 billion.https://www.cookoutnews.com/middleby-completes-acquisitions-of-kamado-joe-masterbuilt-acquisition-and-char-griller/

In July 2022, Middleby acquired CP Packaging, a US-based equipment manufacturer.[23] [24]

Products and brands

Industrial processing

Residential

Former brands

Awards and recognition

Middleby has received awards and recognition, including numerous supplier awards. In 2013 it was recognized as the Supplier Partner of the Year by Brinker International,[31] after installing approximately 1,200 ovens in the company's Chili's restaurants.[32] It was recognized as one of the best stocks of the millennium by The Motley Fool[33] and featured as a hot growth company in BusinessWeek.[34]

Middleby has been on the Forbes list of 200 Best Small Companies numerous times, including being listed as #12 in 2004,[35] #10 in 2005,[36] #9 in 2006,[37] and continuing 9 consecutive years receiving recognition as #25 on the list in 2012.[38] The United States Department of Commerce recognized Middleby in 1997 with the President's "E" Award. The award was given to a total of 11 firms in the United States for recognition of their success in exporting.[39] It was recognized again for its exporting in 2001 as a recipient of the Governor's Export Award presented by then Illinois Governor George Ryan.[40]

Middleby made the Crain's Chicago Business Fast 50 list in 2013,[41] also being recognized on the list in 2007[42] and 2009.[43] It received a NRA Kitchen Innovations Award in 2013 for its WOW! Ovens, currently in use by the top nine pizza chains.[44] It was also featured in the 2011 book Innovating...Chicago-style: How Local Innovators Are Building the National Economy.[45]

Notes and References

  1. Web site: Contact Us - The Middleby Corporation. www.middleby.com. 6 May 2021 .
  2. Web site: Middleby Corp (MIDD.O). Reuters. 11 August 2019.
  3. Web site: MIDD Company Financials. NASDAQ. 11 August 2019.
  4. Web site: The Middleby Corporation (MIDD) Company Profile & Facts - Yahoo Finance. finance.yahoo.com.
  5. News: Carroll . S.R. . Middleby Corp. Is Really Cookin' . Chicago Tribune. 24 September 1995 . 19 November 2013 .
  6. News: Bruno . Pat . Pizza Takes a Bigger Slice of the Pie . Chicago Sun-Times . HighBeam . 27 March 1994 . https://web.archive.org/web/20160409220544/https://www.highbeam.com/doc/1P2-4220925.html . dead . 9 April 2016 . 19 November 2013 .
  7. News: Middleby Opens Philippines Plant. Staff. 6 July 1996. The Daily Herald. 2015-07-26. Newspapers.com. Chicago, Illinois. Business Briefs. 145.
  8. News: Middleby Corp. Plans to Close Plants, CEO says. Goldfard. Sam. 29 November 2006. Daily Herald. 2015-07-26. Newspapers.com. Arlington Heights, Illinois.
  9. 3% figure based on $3.5 million in income on $127 million in sales; 10% figure based on $31.3 million in income on $304.9 million in sales; 15-fold figure based on increase from $6 to $100 per share.
  10. News: Middleby's Shareholders Have Lost Their Marbles. Ashworth. Will. 28 June 2013. InvestorPlace. 19 November 2013. InvestorPlace Media. Rockville, Maryland.
  11. Greenberg . Andy . The Cold War Over Hacking McDonald's Ice Cream Machines . 24 April 2021 . . April 20, 2021.
  12. Web site: Harris . Johnny . Johnny Harris (journalist) . The REAL Reason McDonalds Ice Cream Machines Are Always Broken . YouTube . 24 April 2021 . en.
  13. Web site: Case 1:22-cv-00279-UNA Document 1 Filed 03/01/22 . U.S.District Court for the District of Delaware . https://web.archive.org/web/20220303005404/https://bloximages.newyork1.vip.townnews.com/wrex.com/content/tncms/assets/v3/editorial/a/d4/ad4040ba-9a66-11ec-85cb-bfffd0adb026/621fd28bf0017.pdf.pdf . July 22, 2023 . March 3, 2022.
  14. News: Danner . Patrick . Exporter Neal Asbury is on a Trade Mission . The Miami Herald . Conscientious Equity . 16 March 1990 . 19 November 2013 .
  15. Web site: Form 10-K – Middleby Corporation . Get Filings . 30 December 2000 . 19 November 2013.
  16. Web site: Find the latest from Middleby and its over 90 brands in our Newsroom section | The Middleby Corporation. www.middleby.com.
  17. News: TurboChef sold to Middleby as it posts deeper Q2 loss . Atlanta Business Journal. 12 August 2008 . 13 December 2013 .
  18. News: Middley and TurboChef: Who's Rule Pizza Expo '07 . Appliance Magazine . 15 March 2007 . 13 December 2013 .
  19. News: Elgin's Middleby Corp. acquired Viking Range. Mikus. Kim. 2 January 2013. Daily Herald. 19 November 2013. Paddock Publications. Arlington Heights, Illinois.
  20. News: Hagerty . James . Middleby Buys Viking Range for $380 Million . The Wall Street Journal. 1 January 2013 . 19 November 2013 .
  21. News: Farell. Sean. Aga Rangemaster sold to US company Middleby in £129m deal. 15 July 2015. The Guardian. 15 July 2015.
  22. Web site: The Middleby Corporation buys Taylor Company for $1bn . Foodbev Media . 21 May 2018 . 4 June 2018.
  23. Web site: Middleby acquires equipment manufacturer CP Packaging Supermarket Perimeter . 2022-07-18 . www.supermarketperimeter.com . en.
  24. Web site: 2022-07-13 . Middleby acquires US-based vacuum packaging company CP Packaging . 2022-07-18 . Packaging Gateway . en-US.
  25. Web site: Lancaster . Alaina . Middleby to Purchase Standex Cooking Solutions Group . CSP Daily News . 21 November 2019 . en . 5 March 2019.
  26. News: The Middleby Corporation Acquires CVP Systems. 13 April 2018. June 30, 2017.
  27. Web site: Middleby Acquires Brava Home Inc. . www.businesswire.com . 20 November 2019 . en . 20 November 2019.
  28. Web site: Loizos . Connie . Brava, a smart oven maker with big names attached, just sold to an industrial equipment company . TechCrunch . 20 November 2019 . 20 November 2019.
  29. Web site: Middleby Completes Kamado Joe and Masterbuilt Acquisition, Announces Addition of Char-Griller . www.middleby.com . 27 February 2022 . en . 29 December 2021.
  30. News: Middleby plans subsidiary sale. Staff. 5 November 1996. The Daily Herald. 2015-07-27. Newspapers.com. Chicago, Illinois.
  31. News: Novinson . Eric . When Restaurant Competition Heats Up, This Company Benefits. Motley Fool . 17 September 2013 . 13 December 2013.
  32. News: Channick . Robert . Industry pros eating up what National Restaurant Association show has to offer. Chicago Tribune . 8 May 2012 . 13 December 2013.
  33. News: Barker . Bill . The Best Stocks of the Millennium . The Motley Fool . 1 May 2007 . 19 November 2013.
  34. The Middleby Corporation Receives ACG Emerging Company Growth . Bloomberg BusinessWeek . 20 February 2008 . 19 November 2013.
  35. News: Lambert . Emily . Sell The Sizzle . Forbes . 1 November 2004 . 19 November 2013.
  36. News: 200 Best Small Companies . Forbes . 19 November 2013.
  37. News: Valentino to head Middleby Worldwide. Staff. 27 October 2006. The Daily Herald. Local Focus. Chicago, Illinois. 2015-07-27. Newspapers.com.
  38. News: Elgin's Middleby Corp. ranks on Forbes list . The Daily Herald . 12 November 2012 . 13 December 2013.
  39. Middleby receives the President's "E" Award . United States Department of Commerce via Middleby.com . 17 December 1997 . 19 November 2013.
  40. Governor Announces 2001 Governor's Export Award Winners . 16 August 2001 . 19 November 2013.
  41. News: Fast Fifty 2013: Nos. 46 through 50 . Chicago Business . 3 June 2013 . 13 December 2013.
  42. News: The Middleby Corporation to Acquire TurboChef Technologies . Bloomberg . 12 August 2008 . 13 December 2013.
  43. The Middleby Corporation Completes Acquisition of Doyon Equipment . Business Wire . 16 December 2009 . 13 December 2013.
  44. News: Gieske . Carol . Middleby Marshall WOW! 2 OVEN Named 2013 Kitchen Innovations Award Winner. Elgin Chamber of Commerce . 28 February 2013 . 13 December 2013.
  45. Book: Kuczmarski, Thomas D. . Innovating…Chicago-style: How Local Innovators Are Building the National Economy . Book Ends Publishing . 2011 . 9780615548852.

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