Middleby to acquire Taylor Company for $1bn

US-based food processing equipment manufacturer Middleby has signed a definitive agreement to acquire the Taylor Company from UTC Climate, Controls & Security as part of a deal valued at $1bn.

The Taylor Company primarily manufactures soft serve and ice cream dispensing equipment, frozen drink machines and automated double-sided grills.

Middleby plans to finance the all-cash acquisition via its existing revolving credit facility.

Middleby chairman and CEO Selim Bassoul said: “The acquisition of Taylor is highly strategic for Middleby and bolsters Middleby’s overall position as an industry leader in commercial foodservice.

“Taylor is a unique and premium brand in the commercial foodservice industry with leading positions in beverage, frozen dessert and grilling that are highly complementary to our existing offerings.

“Taylor products are well represented across the top restaurant chains and have a significant presence across all foodservice segments, including quick serve, casual dining, retail, convenience stores and institutional food service establishments.”

Middleby will be able to further enhance its portfolio of beverage solutions through the latest acquisition.

The company also expects Taylor’s automated double-sided grill to expand its cooking lineup with an advanced technology that provides a specialised solution to customers, while facilitating greater labour savings, food safety and cooking performance.

Bassoul further added:  “We are very excited to have the Taylor management team and employees join the Middleby group of companies.

The completion of the transaction is subject to customary closing conditions and regulatory approvals.

It is currently expected to take place during the third quarter of this year.

The acquisition has been structured to provide Middleby with a tax step-up with a net present value of approximately $150m.