Middleby to Spin Off Food Processing Unit into Standalone Public Company

Middleby Corp said on Tuesday it plans to separate its food processing business into an independent public company, aiming to create two focused industry leaders in kitchen equipment and food processing. The tax-free spin-off is expected to be completed by early 2026.

The move will create Middleby Food Processing, a standalone company specializing in industrial protein, bakery, and snack processing equipment, and Middleby RemainCo, which will retain the company’s commercial foodservice and residential kitchen businesses.

“Today’s announcement is the result of a comprehensive review of our business portfolio over the past several quarters and is an important milestone in our work to unlock Middleby’s full value potential,” said Tim FitzGerald, Middleby CEO. “Our team has successfully built a premier food processing business with necessary scale to take this next strategic step, enabling us to best position each of these highly successful businesses.”

Middleby Food Processing will continue serving industrial food markets with full-line solutions, leveraging its existing customer base and a pipeline of M&A opportunities to scale further. In 2024, the business reported USD731m in revenue and an adjusted EBITDA margin above 25%.

Middleby RemainCo will concentrate on commercial and residential kitchen equipment, focusing on automation, digital technologies, and IoT solutions. The company reported USD2.42bn in revenue from its commercial foodservice segment and USD725m from its residential kitchen business in 2024.

The spin-off remains subject to board approval and regulatory filings. Middleby said the transaction is expected to be tax-free for U.S. federal income tax purposes but noted there is no guarantee of final terms or timing.