Middleby Corporation ("Middleby") has completed the sale of a 51% stake in its residential kitchen business to 26North Partners LP ("26North"). This move is part of Middleby's strategic transformation into a pure-play commercial foodservice equipment company and follows the planned spin-off of its food processing business. The sale has brought in approximately $540 million in cash proceeds, which will be used to repurchase shares and optimize the capital structure ahead of the food processing spin-off.
In 2025, Middleby returned approximately $720 million to shareholders and reduced its shares outstanding by approximately 9%. During the fourth quarter of 2025, the company repurchased 1.5 million shares for $218 million. In addition, in the month ending January 31, 2026, Middleby repurchased additional stock valued at $152 million.
Following the completion of the transaction, Middleby will report the residential kitchen business as a discontinued operation, and the income from the joint venture will be reported on the income statement as minority interest.
This strategic portfolio review and the subsequent transactions aim to position Middleby as a pure-play commercial foodservice equipment leader with enhanced focus, higher margins, and superior returns. The company's commercial foodservice business is expected to capitalize on growth opportunities driven by automation, expanded IoT capabilities, and demand in newly entered addressable markets.
Middleby's CEO, Tim Fitzgerald, emphasized that these moves will accelerate the company's portfolio transformation, positioning Middleby for higher growth as an industry leader in automation and innovation.
As Middleby prepares to report its fourth-quarter 2025 earnings, additional details about the impact of these transactions will be provided. Today the company's shares have moved -0.21% to a price of $148.53. For the full picture, make sure to review MIDDLEBY Corp's 8-K report.
