The Middleby Corporation announced the sale of a 51% stake in its Residential Kitchen business to 26North Partners LP. The transaction is valued at USD 885 million. The transaction has been unanimously approved by Middleby’s Board of Directors and is expected to close in the first quarter of calendar year 2026, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.
After the deal is completed, Middleby will own 49% of a new independent joint venture that includes the Residential Kitchen business. Middleby will not control the venture, but it will receive USD 540 million and will also hold a USD 135 million loan to the joint venture.
The Residential Kitchen business brings together a collection of residential equipment brands, including Viking, AGA Rangemaster, La Cornue, Kamado Joe, Marvel, Novy and U-Line.
This transaction, along with the spin-off of the Food Processing business that is expected to be completed in H1 2026, which was announced earlier this year, marks a significant milestone in Middleby’s shift into a commercial foodservice solution provider.
“As a pure-play commercial foodservice company, Middleby is positioned for higher growth as a leader in automation and innovation, with a comprehensive portfolio of leading commercial foodservice products poised to address attractive market opportunities. Commercial foodservice is focused on delivering customer solutions around labor savings, reducing food costs, and maximizing kitchen efficiencies, while entering new growth markets in ice and beverage,” Middleby outlined in an announcement.
As a standalone company, the commercial foodservice platform earned an annual revenue of USD 2.38 billion in 2024, with USD 654 million in Adjusted EBITDA and an Adjusted EBITDA Margin above 27%.
“Today’s announcement is a definitive step in the evolution of Middleby” said Tim FitzGerald, President and Chief Executive Officer of Middleby. “Over the past 12 months, the Middleby team has accelerated our portfolio transformation, including announcing the spin-off of Middleby Food Processing, while investing in organic growth opportunities and returning capital to shareholders.”
“This transaction enables Middleby to partially monetize the Residential Kitchen business at an attractive valuation and provides significant upfront cash proceeds to invest in shareholder return and growth initiatives, while enabling Middleby to participate in Residential Kitchen’s upside potential,” continued Mr. FitzGerald. “We are excited to partner with 26North given its successful history of value creation in collaboration with corporate partners. We look forward to working closely with 26North to create a stronger Residential Kitchen business and to ensure continuity for employees and customers.”
“This investment in the Residential Kitchen business reflects the creative, proprietary and tailored solutions that define how 26North collaborates with corporate partners to unlock value in world-class businesses,” said Mark Weinberg, Partner and Head of Private Equity at 26North. “It creates a dedicated platform for the most influential and iconic brands in residential and outdoor cooking, allowing them to continue setting the pace for the industry.”
Transaction details
Middleby will retain a noncontrolling common equity stake in the standalone Residential Kitchen business. Residential Kitchen’s financial results will be reported as discontinued operations as of Q4 2025 and reported as income from minority interest upon closing.
As part of the transaction, Residential Kitchen will be structured as a joint venture between Middleby and 26North. The transaction will be funded by fully committed third-party debt financing, a USD 135 million seller note provided by Middleby to the joint venture, a preferred equity contribution by 26North and rollover equity by Middleby.
About the Middleby Food Processing spin-off
Middleby Food Processing enters the market with category-leading brands and a synergistic portfolio of best-in-class end-to-end solutions for industrial protein, bakery and snack processors. As a standalone company, Middleby Food Processing is expected to incease its sales.
Middleby Food Processing will continue its focus on full-line solutions, further expansion into adjacent markets and developing new solutions. The food processing business achieved USD 770 million in revenue, USD 197 million in Adjusted EBITDA and an Adjusted EBITDA Margin above 25%.
Photo: Middleby Food Processing (credit: Middleby)