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Middleby Closes 51% Sale of Residential Kitchen Unit, Sets Q2 Spin-Off of Food Processing

The deal delivers about $565 million in cash, refocusing the company on two pure-play platforms.

Overview

  • Middleby sold a 51% stake in its Residential Kitchen business to 26 North at an $885 million enterprise value, generating roughly $565 million in cash proceeds subject to closing adjustments.
  • The company retained a 49% interest in the residential joint venture but will treat it as non-core and report it in discontinued operations, excluding it from adjusted results.
  • Management plans to complete the separation of the Food Processing business in the second quarter of 2026, with an Investor Day scheduled for May 12 in New York.
  • Capital returns included $710 million of share repurchases in 2025 that reduced the share count by about 9%, with additional buybacks executed early in 2026.
  • Guidance issued on the call points to Q1 2026 revenue of $760–788 million and adjusted EPS of $1.90–2.02, and full-year revenue of $3.27–3.36 billion and adjusted EPS of $9.20–9.36, with tariff and interest headwinds noted.