Middleby Corp. is accelerating a major restructuring that will shift the company’s focus squarely onto commercial foodservice customers — and reshape its relationships across the distributor channel.
On Wednesday, the Elgin, Illinois-based manufacturer said it will sell a 51% stake in its residential kitchen business to private-equity firm 26North Partners in a deal valuing the unit at $885 million. Middleby expects to receive about $540 million in upfront cash and a $135 million seller note while retaining a 49% non-controlling interest in the brands, which include Viking, AGA Rangemaster, La Cornue, Kamado Joe, Marvel, Novy and U-Line.
The transaction, expected to close in early 2026, is the second major portfolio move in less than a year and follows Middleby’s plan to fully separate its food processing business next year. Once both actions are complete, Middleby will operate entirely as a commercial foodservice equipment company, competing more directly with industry heavyweights such as Ali Group and Welbilt.
Middleby executives say the streamlined structure will support faster innovation around automation, labor savings, and energy efficiency — areas driving investment among restaurant chains, hospitality operators, and institutional kitchens. That focus also aligns more closely with the needs of dealer partners who sell, install and service most commercial kitchens in North America.
For distributors in those markets, a tighter strategy could bring more consistent product development, stronger channel programs, and increased support for on-site service capabilities. Commercial equipment generated $2.38 billion in Middleby revenue last year, and executives see room to grow in emerging categories such as beverage systems and automated ice production.
The exit from residential markets introduces a different dynamic. The new joint venture under 26North ownership will hold a collection of high-end brands that have deep relationships with specialty appliance distributors and showrooms. As private-equity owners push for financial returns, those distributors could face changes in pricing, channel mix, or marketing strategy. The business will also assume new debt, adding pressure to grow margins and volume.
Management characterized the stake sale as the culmination of a portfolio review designed to unlock value for shareholders. Analysts say it also reflects a decisive shift away from lower-synergy units that distracted from Middleby’s commercial growth narrative.
Once the deal closes, the Residential Kitchen division will be reported as discontinued operations before becoming an equity-method investment. Middleby plans to use proceeds to repurchase shares and strengthen its balance sheet ahead of the Food Processing spin-off.
For distributors, the message is clear: Middleby is concentrating its bets — and expects its partners to do the same. The moves reposition the company around segments where technology and operational performance matter most, while leaving the residential side to redefine its identity under new ownership.
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