Elgin, IL-based The Middleby Corporation (MIDD - Analyst Report) witnessed a healthy response from the market post the announcement of its acquisition of California-based Automatic Bar Controls, Inc. for an undisclosed amount. Middleby share prices rose 4.7% on the news to settle at $240.32 on Dec 20.
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.
Automatic Bar Controls pursues product innovation, customer satisfaction, and superior operating performance to maintain high overall quality. The strong market position of the company will help Middleby gain a strong foothold in the beverage equipment industry.
Middleby has a robust track record of successful acquisitions, which have been contributing significantly to the total revenue. In the past twelve months, Middleby acquired Celfrost, Spooner Vicars, Viking and Nieco. These acquisitions contributed roughly $71.8 million in revenues or 27.9% of the revenue growth in the third quarter of 2013. The company expects these acquisitions to be further accretive in the coming quarters.
Additionally, with the advent of latest technologies, Middleby predicts a healthy market share gain in the near future leveraging its goodwill. The company offers a wide range of products to its target markets and is constantly innovating to thwart competition.
Middleby provides cooking, warming, food preparation and packaging equipment to the commercial, industrial processing and residential markets. The company currently carries a Zacks Rank #2 (Buy).
Other stocks worth considering in the industry include Xylem Inc. (XYL - Analyst Report) , DXP Enterprises, Inc. (DXPE - Snapshot Report) and Graham Corp. (GHM - Snapshot Report) . While Xylem carries a Zacks Rank #1 (Strong Buy), DXP Enterprises and Graham hold a Zacks Rank #2 each.