Middleby Corporation has entered into a definitive agreement to sell a 51% stake in its Residential Kitchen business to affiliates of 26North Partners LP, in a transaction that values the Residential Kitchen division at $885 million. Following the completion of the transaction, Middleby will maintain a 49% non-controlling interest in a newly formed joint venture that will hold the Residential Kitchen business. Middleby will also receive approximately $540 million in upfront cash proceeds and a $135 million seller note provided to the joint venture.

The Residential Kitchen business encompasses several leading premium residential equipment brands, including Viking, AGA Rangemaster, La Cornue, Kamado Joe, Marvel, Novy, and U-Line. This transaction, alongside the previously announced spin-off of the Food Processing business expected to be completed in the first half of 2026, represents a key milestone in Middleby’s transformation into a pure-play commercial foodservice leader.

As a standalone company, Middleby’s commercial foodservice platform has a strong financial profile, with projected 2024 revenues of $2.38 billion, Adjusted EBITDA of $654 million, and an Adjusted EBITDA margin of over 27%.

“Today’s announcement is a definitive step in the evolution of Middleby,” said Tim FitzGerald, President and CEO of Middleby. “Over the past 12 months, the Middleby team has accelerated our portfolio transformation, including announcing the spin-off of Middleby Food Processing, while investing in organic growth opportunities and returning capital to shareholders.”

“This transaction allows Middleby to partially monetize the Residential Kitchen business at an attractive valuation, providing significant upfront cash proceeds for shareholder returns and growth initiatives, while enabling Middleby to participate in Residential Kitchen’s potential upside,” he added. “We are excited to partner with 26North, given its successful history of value creation in collaboration with corporate partners. We look forward to working closely with 26North to build a stronger Residential Kitchen business and ensure continuity for employees and customers.”

Middleby will retain a noncontrolling common equity stake in the standalone Residential Kitchen business. Residential Kitchen’s financial results will be reported as discontinued operations beginning in Q4 2025 and as income from minority interest upon the closing of the transaction.

The transaction will be financed through fully committed third-party debt financing, the $135 million seller note provided by Middleby to the joint venture, a preferred equity contribution by 26North, and rollover equity by Middleby.