JPM | Spin-Off: UPDATE....Middleby to Spin-Off Midera Food Processing

Research evidence excerpt

JPM | Spin-Off: UPDATE....Middleby to Spin-Off Midera Food Processing

Specialist Sales

JPM Risk Arb Trading Desk J P M O R G A N

30 June 2026

Spin Details

Middleby Separation Plan

On February 25, 2025, Middleby announced plans to split into two standalone public companies by separating its food processing

business from its kitchen equipment business.Link

Rationale: The separation aims to create sharper strategic focus for each entity, with dedicated leadership teams, and is expected

to enhance long-term potential and overall valuation of both segments.

Middleby Food Processing (new standalone company): Positioned with best-in-class solutions in large, attractive markets. The

separation will allow it to accelerate growth through organic initiatives and strategic acquisitions, leveraging favorable industry

trends. Middleby Food Processing is an industry leading platform of over 30 brands, with best in class solutions. In 2025, on a

Middleby segment reporting basis, Middleby’s Food Processing business generated over $850 million in net sales with ~20%

Adjusted EBITDA margin. Middleby’s Food Processing business has grown net sales at a ~12% CAGR from 2019 to 2025 based

on Middleby’s current segment reporting. Middleby Food Processing anticipates net debt at close of $200-$225 million, which

represents approximately 1.25x Estimated Standalone Adjusted EBITDA for the fiscal year ended January 2, 2027.

Middleby (remaining company): Will focus exclusively on kitchen equipment for restaurant, institutional, and commercial

markets. Key priorities include product innovation, next-generation kitchen technologies, expanding ice & beverage offerings,

and enhancing go-to-market capabilities. The company expects to maintain strong margins, returns, and cash generation.