Middleby has retired approximately 16% of its outstanding shares over six quarters while simultaneously completing one of the largest portfolio changes in the company’s history. The company repurchased approximately 1.4 million shares, or about 3% of outstanding shares, during Q2. Over the past six quarters, Middleby has repurchased approximately 8.7 million shares, representing roughly 16% of outstanding shares.
At the same time, Middleby completed the separation of its Food Processing business on July 6, creating Midera as an independent publicly traded company. The transaction leaves Middleby as a pure-play commercial foodservice equipment company.
The remaining Commercial Foodservice business delivered approximately 8% organic growth in Q2. Total company net sales, before discontinued-operations presentation begins in Q3, reached $875.5 million, while adjusted EBITDA was $193.2 million.
Middleby ended Q2 with approximately $1.8 billion of net debt and a 2.4x leverage ratio. Management expects the post-spin company to operate with a more focused commercial foodservice portfolio while continuing its capital-allocation strategy.
KEY QUOTES:
“With this separation, Middleby is now a pure-play commercial foodservice company, focused on driving innovation and growth across the global foodservice industry. Throughout this transformation, we remained committed to disciplined capital allocation, repurchasing approximately 1.4 million shares, or 3% of our outstanding shares, during the second quarter and 8.7 million shares, or 16% of our outstanding shares, over the past six quarters.”
Tim FitzGerald, CEO of Middleby
