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Middleby (MIDD) Acquires Proxaut, Boosts Product Portfolio

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The Middleby Corporation (MIDD - Free Report) recently announced that it has completed the acquisition of Proxaut. The financial terms of the transaction were kept under wraps.

Middleby’s shares declined 3% yesterday to eventually close the trading session at $125.4.

Based near Bologna, Italy, Proxaut provides Auto Guided Vehicles (AGVs) to the Industrial processing companies and the food industry. Its two vehicle types facilitate movement of heavy payloads from one point to another and reduces repetitive traditional labor. MIDD generates revenues of about $15 million on an annual basis.

Inside the Headlines

The addition of Proxaut’s strong product line, coupled with its innovative manufacturing processes, is expected to strengthen Middleby’s product offerings in the food processing end market. The buyout will enable Middleby to leverage Proxaut’s expertise in the automated solution space and offer a comprehensive line of AGV solutions to its customers.

This transaction is consistent with Middleby’s policy of acquiring businesses in the automated solution space. The latest acquisition will complement MIDD’s Vemac buyout made in 2018. The latter enhanced MIDD’s offerings of automated solutions.

Zacks Rank, Price Performance and Earnings Estimate Trend

Middleby, with a $6.8-billion market capitalization, currently carries a Zacks Rank #3 (Hold). MIDD is poised to benefit from improving orders across its segments and a robust backlog in the quarters ahead. However, headwinds are expected to continue from the restricted component supply, labor issues and cost inflation.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of Middleby have lost 24.5% compared with the 13.9% decline of its industry in the past three months.

The Zacks Consensus Estimate for second-quarter 2022 earnings has decreased 12.6% to $2.16 in the past 60 days. Also, earnings estimates for 2022 have moved 5% south to $9.59 during the same period.

Stocks to Consider

Some better-ranked companies from the industrial products sector are discussed below:

IDEX Corporation (IEX - Free Report) presently has a Zacks Rank #2 (Buy). IEX delivered a trailing four-quarter earnings surprise of 2.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IDEX’s earnings estimates have increased 1.9% for 2022 in the past 60 days. Its shares have declined 5.6% in the past three months.

Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 2%, on average.

In the past 60 days, ROP’s earnings estimates have increased 0.4% for 2022. The stock has declined 16.6% in the past three months.

Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 4.5%, on average.

In the past 60 days, NDSN’s earnings estimates have increased 3.1% for 2022. The stock has declined 11.1% in the past three months.

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