SS Brewtech acquired by Middleby's

[Beer-lord]

https://finance.yahoo.com/news/middleby ... 01292.html

The Middleby Corporation MIDD announced that it has successfully completed the acquisition of Ss Brewtech. However, the financial terms of the transactions have been kept under wraps.

Founded in 2013, Ss Brewtech is one of the leading beverage equipment makers and the finest player in the craft brewing industry. Based in Santa Ana, CA, this company generates total annual revenues of $20 million.

The Ss Brewtech buyout is believed to be a strategic fit for Middleby. It will create solid growth opportunities for Middleby backed by the increasing fondness for on-site brewing, mainly in restaurants and bars. This apart, the addition of more than 30 employees will be beneficial.

Middleby noted that Ss Brewtech will work independently as its business unit.

We believe that the above-mentioned transaction is consistent with Middleby’s policy of acquiring businesses for attracting more customers and gaining access to various regions and product lines.

In April 2019, the company successfully completed the acquisition of Cooking Solutions Group of Standex International Corporation SXI. Also, the company acquired Newton, MA-based Powerhouse Dynamics, Inc.

Prior to these, Middleby added EVO America and Crown Food Service Equipment to its portfolio in December 2018. Further, M-TEK Corporation was acquired in October 2018, Taylor Company was bought in June, Josper S.A. in May, Firex S.r.l., Ve.Ma.C S.r.l. in April, certain assets of JoeTap in March and Hinds-Bock Corporation in February.

Notably, these strategic buyouts drove Middleby’s sales by 16.1% in 2018 and by 17.2% in the first quarter of 2019. In the quarters ahead, these acquired assets are likely to boost Middleby’s top-line performance.

With a market capitalization of nearly $7.3 billion, Middleby currently carries a Zacks Rank #3 (Hold). Notably, solid product portfolio, synergistic gains from buyouts, strength in Viking business, efforts to broaden technological and manufacturing capabilities, and healthy product demand bode well for the company. However, it faces risks from high costs and operating expenses, unfavorable movements in foreign currencies and increased debts.

In the past 60 days, Middleby’s earnings estimates for 2019 have been lifted by one firm and lowered by two, while the same for 2020 has been raised by one firm and decreased by three. Currently, the Zacks Consensus Estimate is pegged at $6.92 for 2019 and $7.77 for 2020, reflecting a decline of 0.3% for 2019 and 0.5% for 2020.

[John Sand]

Good advice. Buy stock in pots, or put stock in pots, or just stock pots.

[Kealia]

I'm not familiar with the parent company so I have no idea if this is good or bad.
Therefore, I also have no opinion and am just wasting electrons by even posting this comment...