The Middleby Corporation MIDD recently fortified its footprint in the global commercial foodservice equipment market by acquiring QualServ Solutions, LLC (“QualServ”).
Over the last three years, shares of this Zacks Rank #3 (Hold) stock yielded a return of 34.8%, outperforming 16.8% growth recorded by the industry.
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The company is poised to grow on the back of product launches, strategic business acquisitions, ongoing integration moves and greater cost discipline.
Inside the Headlines
QualServ offers unique equipment solutions and services in the worldwide commercial foodservice industry, and is well known for its premium kitchen engineering, designing, and manufacturing services. The company, which also provides a number of product management services, is known to generate annualized revenues of around $100 million.
Middleby noted that its restaurant chain customers currently demand engineering and logistic solutions for both front and back end of restaurants. The company believes that the QualServ buyout would strengthen its kitchen fabrication business in the near term. This, in turn, would aid in expanding its services globally to the restaurant chain customers. Notably, apart from the kitchen equipment sales, Middleby intends to provide state-of-the-art broader and data analytics services to the end users on the back of the QualServ acquisition.
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