Flurry Of Acquisitions Round Out Busy Year Of M&A In E&S

The anticipated increase in the capital gains tax at the federal level combined with generational factors, several years of depressed values, and record low-interest rates to prompt a rash of mergers and acquisitions by foodservice equipment and supplies manufacturers and distributors in the last two months of 2012. A tally of the noteworthy deals for the year by Foodservice Equipment Reports and our forecasting partner John Muldowney, v.p.-marketing at Alto-Shaam, shows 22 transactions were completed or announced during the year, more than double the 10 recorded in 2011.

As this issue of FER Fortnightly details, a number of transactions were announced just in the last three weeks of December. The biggest deal was Middleby Corp.’s $380 million cash deal for Viking Range, the high-end residential appliance manufacturer, announced the last day of the year. But that followed the completion of Pincus Warburg’s sale of Scotsman Industries to Ali Group, Unified Brands picking up Power Soak Systems, and Vollrath’s addition of plastics fabricator Acryfab Inc.. Several dealers also announced acquisitions late in the year, including Kittredge Equipment announcing its acquisition of Northeast Food Service Equipment & Supply on Jan. 1.

What follows is our tally of notable transactions divided into manufacturers and dealers and listed in roughly chronological order through the year. Most of the deals are outright acquisitions, but some are mergers. In the latter case, we list the two companies in alphabetical order. If we missed something, please let us know.

E&S Manufacturer Transactions 2012

Buyer                                      Acquired

Component Hardware             JHL Enterprises

Dispensing Dynamics               Colman Group/San Jamar

Vollrath Co.                             Polarware/Stoelting

Standex Foodservice               Giorik SpA (minority share)

Cooper Atkins                         Docutemp Wireless

Ali Group                                 Scotsman Industries

Middleby Corp.                        Nieco Corp.

Candle Lamp                           Sterno Group

Plymold/Foldcraft                    Waymar/J.H. Carr

Diversified Foodservice            Franklin Machine Products

Vollrath Co.                             Acryfab Inc.

Unified Brands                         Power Soak Systems

Middleby Corp.                        Viking Range

E&S Distributor/Dealer Transactions 2012

Buyer                                      Acquired

Tundra Specialties                     Superior Commercial Kitchens

Direct South                             Citisco Food Service Equip.

H. Weiss Co.                             BRC Commercial Kitchens

Premium Supply                        Tassone Equipment

TriMark USA                              Century Concepts

TriMark USA                              Federighi Design

Mission Restaurant Supply         Metroplex Restaurant  Equip.

Chefs’ Toys                               Star Restaurant E&S

Kittredge Equipment                  Northeast Food Service E&S