The Middleby Corp. (NASDAQ:MIDD) on Thursday announced it will sell a 51% stake in its Residential Kitchen business to affiliates of 26North Partners LP, a deal aimed at pushing the company further toward a commercial foodservice-only future.
Middleby will retain a 49% noncontrolling interest through a new joint venture and expects to receive approximately $540 million in upfront cash, plus a $135 million seller note.
The Residential Kitchen portfolio includes Viking, AGA Rangemaster, La Cornue, Kamado Joe, Marvel, Novy, and U-Line. Middleby said the transaction will be funded through fully committed third-party debt financing, 26North’s preferred equity contribution, Middleby’s rollover equity, and the seller note.
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CEO Tim FitzGerald said the agreement is a “definitive step” in Middleby’s portfolio changes and gives the company capital to support shareholder returns and growth initiatives while retaining participation in future upside from the residential business.
Middleby expects to close the transaction in the first quarter of 2026, subject to regulatory approvals and customary closing conditions. The company also plans to complete its Food Processing spinoff in the first half of 2026, a move it has tied to its goal of operating as a pure-play commercial foodservice company.
Separate from the transaction announcement, the company discussed recent operating performance and capital priorities in its quarterly release, including management’s view of its portfolio positioning.
MIDD Price Action: Middleby shares were up 0.59% at $120.61 during premarket trading on Thursday, according to Benzinga Pro data.
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