Middleby lifted by orders from chain accounts

Blodgett

The Middleby Corporation said increased business with restaurant chains provided a boost to its third quarter catering equipment sales.

Net sales at the company’s Commercial Foodservice Equipment Group, which features heavy duty catering and cooking kit, climbed 11% to $291m (£192m), as it was also lifted by the impact of recent acquisitions, such as Desmon, Goldstein Eswood, Marsal and Induc.

On an organic basis, sales still grew a healthy 6% in the third quarter, or 10% on a constant currency basis.

Selim Bassoul, chairman and CEO, said: “We have realised strong sales growth at the Commercial Foodservice Equipment Group as we continued to increase our business with chain restaurant customers adopting our new and innovative technologies as they seek to improve the efficiency of their restaurant operations. We maintained our strong profitability in this segment while integrating five business units acquired during the past year.”

Overall sales at the firm, which also operates food processing and residential kitchen divisions, increased 11% year-on-year to $449m (£296m), although net earnings slipped from $60m (£39m) to $49m (£32m) on the same basis.

Middleby said its total debt at the end of the third quarter amounted to $755m (£497m) compared to $598m (£394m) at the end of 2014. The net increase in debt includes acquisitions-related financing in connection with the companies it has acquired this year.

The latest addition to its portfolio is British domestic cooker maker AGA, which is costing the company £130m.

“This acquisition significantly expands the scope of our Residential Kitchen Equipment Group and we are in the initial stages of reviewing the synergies and growth opportunities amongst the broadened platform, which are expected to result in profitability improvements at this acquired business in 2016,” commented Bassoul.

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