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The Middleby Corporation (MIDD - Free Report) announced that it successfully completed the acquisition of Cooking Solutions Group of Standex International Corporation (SXI - Free Report) . Concurrently, it communicated about the buyout of Newton, MA-based Powerhouse Dynamics, Inc. Financial terms of the transactions have been kept under wraps.
It is worth mentioning here that the company’s stock price increased roughly 1.9% at the close of the trading session on Apr 1, 2019. The closing price on that day was $132.55.
Details on Cooking Solutions Buyout
Middleby announced about the Cooking Solutions buyout deal on Feb 27, 2019.
Standex International’s Cooking Solutions Group specializes in manufacturing and providing food merchandisers, ovens, warmers and fryers. It is based in Texas and has well-known brands, including BKI, Bakers Pride, APW Wyott and Ultrafryer. Revenues generated in 2018 totaled $100 million.
The acquired assets are included under Middleby’s Commercial Foodservice Equipment Group. This segment was the highest revenue generator (accounting for 64% of the company’s total quarterly sales) in the fourth quarter of 2018.
Details on Powerhouse Dynamics Buyout
Powerhouse Dynamics primarily serves the foodservice industry through cloud-based IoT solutions. These solutions are applied through the SiteSage platform — which will complement the Connect IoT platform of Middleby.
Apart from strengthening IoT capabilities, Powerhouse Dynamics will help Middleby serve customers efficiently. Powerhouse Dynamics will work independently within Middleby.
Snapshot of Middleby’s Inorganic Initiatives
We believe that the above-mentioned transaction is consistent with Middleby’s policy of acquiring businesses to gain access to new customers, regions and product lines.
Prior to Standex’s Cooking Solutions and Powerhouse Dynamics buyouts, Middleby added EVO America and Crown Food Service Equipment to its portfolio in December 2018. Further, Middleby added M-TEK Corporation (October 2018), Taylor Company (June 2018) Josper S.A. (May 2018), Firex S.r.l., Ve.Ma.C S.r.l. (April 2018), certain assets of JoeTap (March 2018) and Hinds-Bock Corporation (February 2018). In 2018, acquisitions increased Middleby’s sales by 16.1%.
In the quarters ahead, these acquired assets will likely boost Middleby’s top-line performance.
Zacks Rank & Stocks to Consider
With a market capitalization of nearly $7.2 billion, Middleby currently carries a Zacks Rank #3 (Hold). Focus on innovation of products, lower corporate taxes and synergistic gains from acquired assets will be advantageous for the company in the quarters ahead. However, the soft AGA Rangemaster business, rising costs, high debts and unfavorable movements in foreign currencies might continue to harm its performance.
In the past 60 days, Middleby’s earnings estimates for 2019 have been increased by two firms and lowered by one. Currently, the Zacks Consensus Estimate is pegged at $7.00 for 2019, reflecting growth of 0.7% from the 60-day-ago tally. Estimates for 2020 pegged at $7.91 reflect a decline of 3.4% from the 60-day-ago tally.
In the past 60 days, earnings estimates for both the stocks have improved for the current year. Further, average earnings surprise for the last four quarters was positive 46.55% for DXP Enterprises and 2.27% for Sun Hydraulics.
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Middleby Completes Standex Deal, Acquires Powerhouse Dynamics
The Middleby Corporation (MIDD - Free Report) announced that it successfully completed the acquisition of Cooking Solutions Group of Standex International Corporation (SXI - Free Report) . Concurrently, it communicated about the buyout of Newton, MA-based Powerhouse Dynamics, Inc. Financial terms of the transactions have been kept under wraps.
It is worth mentioning here that the company’s stock price increased roughly 1.9% at the close of the trading session on Apr 1, 2019. The closing price on that day was $132.55.
Details on Cooking Solutions Buyout
Middleby announced about the Cooking Solutions buyout deal on Feb 27, 2019.
Standex International’s Cooking Solutions Group specializes in manufacturing and providing food merchandisers, ovens, warmers and fryers. It is based in Texas and has well-known brands, including BKI, Bakers Pride, APW Wyott and Ultrafryer. Revenues generated in 2018 totaled $100 million.
The acquired assets are included under Middleby’s Commercial Foodservice Equipment Group. This segment was the highest revenue generator (accounting for 64% of the company’s total quarterly sales) in the fourth quarter of 2018.
Details on Powerhouse Dynamics Buyout
Powerhouse Dynamics primarily serves the foodservice industry through cloud-based IoT solutions. These solutions are applied through the SiteSage platform — which will complement the Connect IoT platform of Middleby.
Apart from strengthening IoT capabilities, Powerhouse Dynamics will help Middleby serve customers efficiently. Powerhouse Dynamics will work independently within Middleby.
Snapshot of Middleby’s Inorganic Initiatives
We believe that the above-mentioned transaction is consistent with Middleby’s policy of acquiring businesses to gain access to new customers, regions and product lines.
Prior to Standex’s Cooking Solutions and Powerhouse Dynamics buyouts, Middleby added EVO America and Crown Food Service Equipment to its portfolio in December 2018. Further, Middleby added M-TEK Corporation (October 2018), Taylor Company (June 2018) Josper S.A. (May 2018), Firex S.r.l., Ve.Ma.C S.r.l. (April 2018), certain assets of JoeTap (March 2018) and Hinds-Bock Corporation (February 2018). In 2018, acquisitions increased Middleby’s sales by 16.1%.
In the quarters ahead, these acquired assets will likely boost Middleby’s top-line performance.
Zacks Rank & Stocks to Consider
With a market capitalization of nearly $7.2 billion, Middleby currently carries a Zacks Rank #3 (Hold). Focus on innovation of products, lower corporate taxes and synergistic gains from acquired assets will be advantageous for the company in the quarters ahead. However, the soft AGA Rangemaster business, rising costs, high debts and unfavorable movements in foreign currencies might continue to harm its performance.
In the past 60 days, Middleby’s earnings estimates for 2019 have been increased by two firms and lowered by one. Currently, the Zacks Consensus Estimate is pegged at $7.00 for 2019, reflecting growth of 0.7% from the 60-day-ago tally. Estimates for 2020 pegged at $7.91 reflect a decline of 3.4% from the 60-day-ago tally.
The Middleby Corporation Price and Consensus
The Middleby Corporation Price and Consensus | The Middleby Corporation Quote
In the past three months, shares of Middleby have increased 31.6% versus the industry’s growth of 25.4%.
Two better-ranked stocks in the industry are DXP Enterprises, Inc. (DXPE - Free Report) and Sun Hydraulics Corporation . The stocks currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for both the stocks have improved for the current year. Further, average earnings surprise for the last four quarters was positive 46.55% for DXP Enterprises and 2.27% for Sun Hydraulics.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>