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July 14, 2021

Middleby not to increase acquisition price for Welbilt

Middleby’s announcement comes after Italian foodservice equipment manufacturer Ali Group raised its acquisition offer for Welbilt.

American foodservice equipment provider Middleby has announced that the company will not increase its offer to acquire Welbilt.

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The announcement comes after Italian foodservice equipment manufacturer Ali Group raised its all-cash offer to acquire Welbilt.

In April, Middleby entered a definitive merger agreement to buy smaller contender Welbilt in an all-stock transaction valued at $2.9bn.

Middleby said that it will not make any changes to the proposed agreement and allow the five-day period in which it could match the offer from Ali Group to expire. This would lead to the termination of the merger agreement.

Under the deal, Middleby will be entitled to receive $110m from Welbilt to terminate the merger.

Middleby CEO Timothy FitzGerald said: “We believe that the previously agreed terms of the merger agreement between Middleby and Welbilt offered significant long-term strategic value to the Welbilt shareholders through the ability to participate in substantial upside opportunity from Middleby’s continued growth while remaining attractive to our existing Middleby shareholders.

“As we considered our options over the course of the match period, we concluded to deploy our substantial financial resources wisely. We are excited about the momentum of our business and future prospects of our three-industry leading foodservice platforms.”

This May, Ali Group proposed to acquire all the outstanding shares of Welbilt common stock for $23 per share in cash for nearly $3.3bn.

Earlier this month, Ali Group submitted a definitive proposal and merger agreement to the Welbilt board of directors to acquire all outstanding shares of the latter’s common stock for $24 per share in cash.

The decision of Middleby could further strengthen the Italian company’s proposal.

Free Report
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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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