Premium and renowned diversified machinery manufacturer Middleby Corporation MIDD recently acquired the assets of a prominent manufacturer of induction cooking equipment, Induc Commercial Electronics Co. Ltd. (‘Induc’), for an undisclosed amount.
Induc, a renowned firm in the contemporary commercial foodservice industry, is headquartered in Qingdoa, China. After fortifying its commercial activities in the Chinese market, the firm has been making efforts to expand its presence in other Asian countries.
The acquisition of Induc is in sync with Middleby’s exsiting innovation-based growth strategy. Induc manufactures variable types of innovative products under the brand “ECO Kitchen”, which include specialized wok ranges, tilting skillets, steamers, pasta cookers and fryers. Middleby believes that the buyout of Induc would strengthen its ‘CookTek’ brand. Induction cooking equipments have seen increased demand from consumers due to positive aspects like energy efficiency, precise temperature control, time-saving and safety.
Middleby aspires to become the undisputed leader in the global foodservice equipment industry. As a step toward this goal, the latest acquisition would help the company strengthen its product portfolio, technological expertise and brand position. Furthermore, with Induc generating annual revenues of approximately $10 million, the firm is expected to augment Middleby’s top line in the near term.
Stocks to Consider
Middleby presently holds a Zacks Rank #2 (Buy). Other stocks worth considering in the industry are EnPro Industries, Inc. NPO, Luxfer Holdings PLC LXFR and Metso Corporation MXCYY. All three stocks carry the same Zacks Rank as Middleby.
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