Middleby To Acquire Taylor Company
Major news spread across the National Restaurant Association showfloor on May 18, with the announcement that the Middleby Corp. has entered into a definitive agreement to acquire the Taylor Company from UTC Climate, Controls & Security, a unit of United Technologies for $1 billion.
Taylor manufactures soft-serve and ice cream dispensing equipment, frozen drink machines, and automated double-sided grills. Middleby will finance the all-cash acquisition under its existing revolving credit facility. In 2017, Taylor had revenues of approximately $315 million and $65 million of adjusted earnings before interest, taxes and depreciation. The transaction completion is subject to customary closing conditions, including regulatory approvals, with an expected closing early in the third quarter of 2018.
Middleby Chairman and CEO Selim Bassoul called it a strategic acquisition for Middleby. “Taylor provides a leading platform to continue to build our portfolio of beverage solutions, complementing our existing brands and technologies in this product category. We believe Taylor is well-positioned for growth as customers continue to invest in and expand their beverage offerings. Additionally, there are significant technology synergies amongst Taylor and our existing related businesses, which should further add to the growth opportunities in this category.”
Bassoul cited the Taylor automated double-sided grill as key to expanding the company’s cooking lineup. “This acquisition enhances Middleby’s existing capabilities in automated cooking solutions and adds a critical technology as we further develop our portfolio of automated cooking solutions.”
Taylor’s management team will continue to lead the business, which will continue to operate from its existing facilities in Rockton, Ill.