Bullish indicating open at $55-$60, IPO prices at $37
ELGIN, Ill. - The Middleby Corporation (NASDAQ:MIDD) announced Tuesday it has acquired German manufacturer Oka-Spezialmaschinenfabrik GmbH & Co. KG, a move that expands its food processing equipment offerings.
Oka, based in Darmstadt, Germany, specializes in industrial extrusion, molding, depositing and cutting equipment for bakery, confectionery and pet-food markets. The company generates annual revenues of $12 million, a small addition to Middleby’s substantial $3.8 billion in annual revenue.
"Oka is a perfect complement and strategic fit, adding important product categories to our solutions for bakery customers," said Tim FitzGerald, Middleby CEO, in a press release statement. The acquisition aligns with Middleby’s strong profitability metrics, including a 38% gross margin and healthy free cash flow yield of 9%.
The acquisition is expected to create sales synergies by enhancing Middleby’s full-line bakery solutions while expanding Oka’s market reach beyond Germany.
Middleby, a manufacturer of equipment for commercial foodservice, food processing, and residential kitchens, indicated the acquisition strengthens its food processing business ahead of a planned spinoff in 2026.
The transaction represents Middleby’s continued focus on expanding its specialized equipment portfolio through strategic acquisitions. The company did not disclose financial terms of the deal.
In other recent news, Middleby Corporation reported its second-quarter 2025 earnings, revealing a mixed performance. The company’s adjusted earnings per share (EPS) came in at $2.35, slightly surpassing analyst expectations of $2.29. However, revenue fell short, reaching $977 million compared to the forecasted $980.67 million. The Food Processing segment performed well, with sales approximately 9% above consensus, while the Commercial Foodservice and Residential Kitchen segments both reported sales about 2% below expectations. Canaccord Genuity responded by lowering its price target for Middleby to $162.00 from $186.00, though it maintained a Buy rating. The adjustment reflects concerns over the impact of tariffs on the company’s performance. These developments indicate a cautious outlook for the company, with analysts closely monitoring the effects of tariffs on future earnings.
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