Middleby Sells Majority Stake in Viking Unit in $885M Deal
Partnership with Josh Harris-backed 26North will see Middleby retain a 49% stake as it sharpens its focus on commercial foodservice.
Middleby Corporation, the industrial kitchen equipment giant, announced a significant strategic shift on Wednesday, agreeing to sell a 51% controlling stake in its residential kitchen appliance division, which includes the well-known Viking and La Cornue brands, to affiliates of 26North Partners.
The transaction values the residential business at $885 million. According to the company's official announcement, Middleby will receive approximately $540 million in cash and a $135 million seller's note, while retaining a 49% non-controlling interest in a new joint venture.
Shares of Middleby gained 2.3% to trade around $119.90 in morning activity, as investors reacted positively to the move. The $675 million in total proceeds represents more than 11% of the company's approximately $5.94 billion market capitalization, underscoring the deal's financial impact.
The divestiture marks a pivotal step in Middleby's strategy to streamline its operations and concentrate on its core, higher-margin commercial foodservice segment. The company has grown through hundreds of acquisitions over the years, creating a complex portfolio that also includes a food processing division, which it now plans to spin off in the first half of 2026.
"This transaction is a milestone moment in Middleby's evolution," said Tim FitzGerald, Middleby's chief executive officer. "It accomplishes a key strategic priority of separating our Residential and Commercial Foodservice businesses, allowing each to have the strategic focus and capital allocation to deliver long-term value for our stakeholders."
The partnership with 26North, a private equity firm founded by billionaire investor Josh Harris, brings a high-profile partner into the fold. Harris, a co-founder of Apollo Global Management, is also known for his ownership stakes in several professional sports franchises. In a separate release, 26North expressed enthusiasm for the premium brands within the residential portfolio, including Viking, La Cornue, and Masterbuilt.
For Middleby, the infusion of cash is expected to strengthen its balance sheet by enabling significant debt reduction. The company plans to report the financial results of its residential kitchen segment as discontinued operations beginning in the fourth quarter of 2025.
The move comes as Middleby's stock has been trading closer to its 52-week low of $110.82 than its high of $182.73, suggesting investors have been seeking a catalyst for value creation. Wall Street analysts currently have a consensus price target of approximately $153 on the stock, indicating potential upside as the company's strategic realignment progresses.
By narrowing its focus, Middleby aims to operate as a more agile and specialized player in the commercial foodservice industry, a sector that serves restaurants, hotels, and institutional kitchens globally. Investors will now be watching closely for management's execution of the planned Food Processing spin-off and how the leaner corporate structure translates into improved profitability and growth.