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Investing.com -- Middleby Corporation (NASDAQ: MIDD) stock rose 3% after the company confirmed it is conducting a strategic review of its business portfolio, potentially leading to the separation of its Food Processing and Residential Kitchen units. The review, aimed at maximizing shareholder value, is in advanced stages with a conclusion expected in the coming months.
The Elgin, Illinois-based equipment manufacturer for the commercial foodservice, food processing, and residential kitchen industries has seen its board, with the help of external financial and legal advisors, evaluating a broad range of strategic options. This includes the possibility of splitting its business units to unlock unrealized value within the company's portfolio.
The strategic review process, which began last year, has reached a stage where the board expects to reach a decision soon, although there is no certainty about the outcome. Middleby has stated it will not provide further comments until a definitive transaction or course of action is approved by the board or if further disclosure is deemed necessary.
This announcement follows recent news that Garden Investments, led by Trian Fund Management co-founder Ed Garden, has taken an almost 5% stake in Middleby. The activist investor has been advocating for changes to improve the company's lagging share price.
Middleby has appointed Goldman Sachs & Co (NYSE:GS). LLC as its exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor to assist in the strategic review process.
Investors have reacted positively to the news, reflecting optimism about the potential outcomes of the review and the impact on shareholder value. As the market anticipates the company's next steps, Middleby's stock has experienced a notable uptick in today's trading session.
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