Middleby Corporation to Buy Taylor for USD1bn

The Middleby Corporation will acquire the Taylor Company from UTC Climate, Controls & Security, a unit of United Technologies, for USD1bn.

Taylor manufactures beverage equipment, soft serve and ice cream dispensing equipment, frozen drink machines and automated double-sided grills.

Middleby will finance the all-cash acquisition under its existing revolving credit facility. In 2017, Taylor had revenues of approximately USD315m and USD65m of adjusted earnings before interest, taxes and depreciation (EBITDA). The transaction completion is subject to customary closing conditions, including regulatory approvals, with an expected closing early in the third quarter of 2018.

If the deal is approved, the Taylor management team is expected to remain in place and will continue to run the company from its Rockton, Ill., location.

Selim A. Bassoul, chairman and CEO Middleby, says: “The acquisition of Taylor is highly strategic for Middleby and bolsters Middleby’s overall position as an industry leader in commercial foodservice. Taylor is a unique and premium brand in the commercial foodservice industry with leading positions in beverage, frozen dessert and grilling that are highly complementary to our existing offerings. Taylor products are well represented across the top restaurant chains and have significant presence across all foodservice segments, including quick serve, casual dining, retail, convenience stores, and institutional foodservice establishments. The acquisition further deepens our presence in these categories and with existing customers for new offerings in the kitchen.”

Mr. Bassoul underlined that the acquisition enhances Middleby’s existing capabilities in automated cooking solutions and adds a critical technology as it further develops the portfolio of automated cooking solutions.

Taylor’s business will continue to operate from its existing facilities in Rockton, Illinois, USA.

This represents Middleby’s fourth deal in the past two months. In April, the multi-line foodservice equipment manufacturer bought JoeTap, Firex SRL and Josper SA.