tiprankstipranks
Middleby Snaps up Novy, Shares Rise
Market News

Middleby Snaps up Novy, Shares Rise

The Middleby Corporation (MIDD) announced that it has acquired Belgium-based premium residential appliance brand, Novy. The financial terms of the deal have been kept under wraps.

Shares of the U.S.-based commercial and residential cooking and industrial process equipment company were up 1.1% to close at $176.93 on July 12. (See MIDD stock charts on TipRanks)

Novy is a producer of a range of residential ventilation and other kitchen products, with annual sales of approximately $90 million and EBITDA margins of over 20%.

Through the acquisition of Novy, Middleby will enhance its residential products portfolio and increase its footprint internationally in the growing premium residential kitchen appliance segment.

Middleby CEO Tim FitzGerald commented, “Novy is recognized for its market leading innovations and product designs, complementing our expanding portfolio of premium residential brands. The business is well-positioned in the built-in cooking segment of the residential market, a category which is growing globally.”

He further added, “We believe there are exciting opportunities to realize synergies with our existing residential brands. The introduction of the Novy brand and products into the U.S. and U.K. markets, where Middleby Residential is well-established, will further accelerate the company’s sales.”

Following the acquisition announcement, J.P. Morgan analyst Thomas Simonitsch increased the price target on Middleby to $194 (9.7% upside potential) from $180 and reiterated a Buy rating on the stock.

Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average Middleby price target of $212.63 implies 20.2% upside potential to current levels.

The Middleby scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
Duck Creek Technologies Posts Strong Q3 Results, Updates Outlook
European Regulator Links Pfizer and Moderna’s mRNA COVID-19 Vaccines with Heart Conditions – Report
Houlihan Lokey Snaps up Baylor Klein

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles