ELGIN,
ILLINOIS and NEWTON, IOWA (August 31, 2001) – The Middleby Corporation
(NASDAQ: MIDD) has agreed to purchase Maytag Corporation’s (NYSE: MYG)
Blodgett commercial cooking products business for $80 million in cash and $15
million in notes according to a joint announcement today by both firms.
The sale, which is subject to regulatory approval, is expected to be
completed in the fourth quarter of this year.
Middleby’s financing for the purchase will be led by Bank of America.
Maytag
announced in May it would explore the sale of Blodgett, which manufactures
commercial cooking products under the Blodgett, Pitco Frialator, Magikitch’n
and Blodgett Combi brands. Maytag
acquired Blodgett in 1997 for about $148 million, and last year Blodgett’s net
sales were approximately $135 million. Jade
Products, another Maytag commercial cooking products business, is not part of
the Blodgett sale.
The
Middleby Corporation is a global supplier of equipment to the foodservice
industry with net sales of $127 million in 2000.
Its leading brands include Middleby Marshall, Southbend, and Toastmaster.
Middleby is uniquely positioned to support the global expansion of
foodservice concepts through its wholly owned international distribution and
service subsidiary, Middleby Worldwide and its Asian manufacturing operation,
Middleby Philippines Corporation.
Commenting
on the pending sale, Maytag Chairman and CEO Ralph F. Hake said, “Blodgett is
a fine company, with strong products and brands.
Earlier this year, Maytag decided its strategies for growth should be
focused on its core home appliance and vending businesses.
That meant Blodgett’s opportunity for growth would be best-served by
being part of a company that has a proven track record of success in the
commercial foodservice industry. I agree with that strategic perspective, and we are pleased
that The Middleby Corporation has agreed to purchase our Blodgett business.”
Selim
A. Bassoul, President and CEO of Middleby further commented, “We are very
excited about the announcement of this acquisition.
Like Middleby, Blodgett is a leader in the industry and the combined
entity provides for an excellent strategic fit.
The merging of the two companies creates an extremely strong combination
of complimentary products with industry leading brands in all major segments of
the commercial cooking equipment industry.
This transaction will immediately double the size of our company and we
see significant opportunities to further strengthen the combined business.
The broad line of products resulting from the acquisition, combined with
the strength of Middleby’s existing global sales and distribution
infrastructure will position Middleby as the leading cooking equipment supplier
in the foodservice industry. We are excited about the value this transaction brings
to our customers and shareholders.”
Maytag
Corporation is a leading producer of home and commercial appliances. Its products are sold to customers throughout North America
and in international markets. The
corporation’s principal brands include Maytag, Hoover, Amana, Jenn-Air, Maytag
Performa and Dixie-Narco.
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Maytag
Forward-Looking Statements: Certain
statements in this news release, including any discussion of management
expectations for future periods, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially from the future results expressed
or implied by those statements. For
a description of such factors as they relate to Maytag, refer to "Forward
Looking Statements" in the Management's Discussion and Analysis section of
Maytag's Annual Report on Form 10-K for the year ended December 31, 2000, and
each quarter’s 10-Q.
Middleby
Forward-Looking Statements: Statements
in this press release or otherwise attributable to the company regarding the
company's business which are not historical fact are forward-looking statements
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The company cautions investors that such statements are
estimates of future performance and are highly dependent upon a variety of
important factors that could cause actual results to differ materially from such
statements. Such factors include, but are not limited to, quarterly variations
in operating results; dependence on key customers; international exposure;
foreign exchange and political risks affecting international sales; changing
market conditions; the impact of competitive products and pricing; the timely
development and market acceptance of the company's products; the availability
and cost of raw materials; and other risks detailed herein and from time-to-time
in The Middleby Corporation’s SEC filings, including those discussed under the
heading entitled ``Risk Factors'' in The Middleby Corporation’s Form 10-K for
the year ended December 30, 2000.
Maytag
Media Contact:
Cynthia Deppe
Maytag
Communications
641-787-6977
Additional
information:
www.maytagcorp.com
The
Middleby Corporation
Contact:
David
B. Baker
Vice President and CFO
Additional
Information:
www.middleby.com