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Middleby (MIDD) Fortifies Portfolio With Brava Home Buyout

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The Middleby Corporation (MIDD - Free Report) has announced that it acquired Redwood City, CA-based Brava Home Inc. The financial terms of the transactions have been kept under wraps.

Brava Home specializes in providing advanced technology for residential cooking. Its cooking-by-light technology saves cooking time for users. Also, appliances powered by the technology are eco-friendly.

The Brava Home buyout is expected to strengthen Middleby’s product offering in the commercial and residential businesses.

Middleby’s Inorganic Initiatives

We believe that the above-mentioned transaction is consistent with Middleby’s policy of acquiring businesses for attracting customers, and gaining access to various regions and product lines.

In July 2019, the company acquired Packaging Progressions, Inc. The buyout has been strengthening Middleby’s product offering related to processing technologies, with the addition of two products — ProLeaver and ProStax.

In June 2019, Middleby acquired Santa Ana, CA-based Ss Brewtech, while bought Cooking Solutions Group of Standex International Corporation (SXI - Free Report) and Newton, MA-based Powerhouse Dynamics, Inc in April 2019.

Notably, buyouts drove Middleby’s sales by 5.8% in the third quarter of 2019.

Zacks Rank, Earnings Estimates and Price Performance

Middleby, with a market capitalization of nearly $6.4 billion, currently carries a Zacks Rank #3 (Hold).

The company anticipates gaining from product innovation, improving selling techniques, solid offerings to customers and growth markets. It is also likely to benefit from various profitability actions. However, Brexit-related issues, weak spending by restaurant chains and issues related to the meat processing line of operations might play spoilsport.

The Zacks Consensus Estimate for Middleby’s earnings is pegged at $6.74 for 2019 and $7.43 for 2020, reflecting increases of 3.4% and 1.2% from the respective 30-day-ago figures.

The Middleby Corporation Price and Consensus

 

The Middleby Corporation Price and Consensus

The Middleby Corporation price-consensus-chart | The Middleby Corporation Quote

Shares of Middleby have gained 4.4% compared with the industry’s 10% growth in the past three months.




Stocks to Consider

Two better-ranked stocks in the same industry are Tennant Company (TNC - Free Report) and Dover Corporation (DOV - Free Report) . While Tennant sports a Zacks Rank #1 (Strong Buy), Dover carries a Zacks Rank #2 (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 companies have improved for the current year. Further, average earnings surprise for the last four quarters was positive 28.65% for Tennant and 6.70% for Dover.

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