Middleby Buys Viking Range For $380 Million
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Middleby Buys Viking Range For $380 Million
January 14, 2013 Middleby Buys Viking Range for $380 Million Serve It Up In Style! Add Appeal To Serving Lines With Custom Vinyl & Laminates By James R. Hagerty . Middleby Corp. has acquired Viking Range Corp., a maker of high-end cooking ranges and related equipment, for $380 million, betting on a continuing recovery in the U.S. housing market. Based in Greenwood, Miss., Viking has annual sales of about $200 million. Middleby, an Elgin, Ill., maker of commercial cooking equipment, expects 2012 sales of nearly $1 billion. NAFEM Booth #835 ADVANCE TABCO ® SMART FABRICATIONTM www.advancetabco.com Viking was owned by a group of investors, including Warren Stephens, and the company's founder, Fred Carl Jr. The previous owners couldn't be reached for comment. Middleby said Monday that it would incorporate its speed-cooking, induction and other technologies into Viking equipment, while reducing costs. Middleby Chief Executive Selim Bassoul said some of his company's commercial equipment can cook a frozen turkey in 20 minutes. Along with commercial equipment, Middleby sells residential appliances under the Jade and Turbochef brands. Before the Viking purchase, though, residential sales accounted for only 1% to 2% of Middleby's total. "We believe that the U.S. housing market is now really growing," Mr. Bassoul said. That growth, plus kitchen renovations, should spur sales of professional-style cooking equipment, he said. Mr. Bassoul said he bought a Viking range for his home about 12 years ago. Viking ranges retail for between about $3,000 and $8,000. (Continued on page two) Kittredge Equipment Acquires Northeast Food Service Equipment and Supply Agawam, Massachusetts based FEDA member firm Kittredge Equipment announced recenty that it had acquired Northeast Food Service Equipment and Supply, a leading foodservice equipment and supplies dealer located in Bow, New Hampshire. “Northeast is a great company with a strong family heritage. Their dedication to high-quality service is an ideal fit with Kittredge Equipment’s culture and commitment to exceptional customer service,” said Jeffrey Mackey, VP of Sales and Operations of Kittredge. “The acquisition has positioned us to help grow our local New England business by having several locations and vast amount of stock available to our customers.” Dave and Barbara Unger, owners of Northeast, along with former business partner Jack Nicholas added, “As a family owned business, it was important to us to find the right partner to help this company move into the future. We are thrilled that the values of Kittredge Equipment are so closely aligned with ours; those of integrity, value, service, quality, and hard work. Our family believes that by being a part of Kittredge Equipment, our employees will continue to enjoy the culture which Northeast has spent decades building. We are excited about what the future holds and know that as our customers understand our increased capabilities, they will be delighted.” (Middleby Buys Viking Range for $380 Million, cont.) Mr. Bassoul said Mr. Carl would continue to run the Viking business and that Middleby doesn't plan to close Viking's factories, which are in Greenwood. Mr. Carl, a former home builder, founded Viking in the 1980s after noticing that some of his customers wanted restaurant-style ranges. Commercial stoves typically aren't practical for use at home, partly because they need large ventilation systems. Viking should be able to expand its sales in Asia and the Middle East as well as in the U.S., Mr. Bassoul said. About six years ago, before the U.S. housing bust, Viking sales were about $400 million a year, about twice the recent pace, he said. Viking's earnings before interest, taxes, depreciation and amortization have been about 10% to 12% of sales recently, Middleby said. The company expects the acquisition to have a negative effect on earnings per share in the first half but to turn positive in the second half. Viking was one of the best-known independent makers of luxury kitchen appliances. Another independent company in the industry, Sub-Zero Inc., known for its refrigerators and Wolf ovens, is owned by the family of CEO Jim Bakke. A spokeswoman for Sub-Zero, which is based in Madison, Wis., said the company isn't for sale. FEDA welcomes Alto Hartley, Inc. to its membership FEDA is pleased to announce that Alto Hartley, Inc.. is the Association’s first new member of 2013. Please join FEDA in welcoming them! Alto Hartley, Inc. Stefanie Graves, Vice President 1313 Dolley Madison Blvd., Ste. 400 McLean, VA 22101 Phone: 703-883-1448 Fax: 703-883-0244 Email: [email protected] Sponsor: Craig Sigismondi, Carey Sales & Services, Inc. Source: The Wall Street Journal Some good news in last minute tax deal for distributors Tim Walsh of Newgistics Freight Services shared with FEDA the following on the extension of tax break for restaurants and retail stores who buy equipment in the new tax bill. The legislation contains a long list of tax "extenders," or temporary tax provisions that will be perpetuated for a year. Some big-ticket items were part of that, including an extension through 2013 of the widely claimed research and development tax credit. Also included was a provision allowing businesses to write off immediately half the value of new investments, known as 50 percent bonus depreciation. The legislation also includes a wide range of other favors for select industries, including tax breaks for railroad track maintenance, restaurant and retail store improvements, auto racetracks, film and television production, and rum production in Puerto Rico and the U.S. Virgin Islands On the Move CREATE A Signature EXPERIENCE G www.genevadesignsllc.com FEDA member firm Loubat Foodservice Equipment is pleased to announce the addition of Melinda Alfonso as sales representative. Tom Szafranski, President, ITW Food Equipment Group Commercial Sales announced recently that Jim Cullinane, Vice President, Sales for Vulcan, Berkel and Wolf will be retiring effective April 2, 2013. Jim started his career as the Sales Rep out of the Dayton, Ohio Hobart office in 1975 and took several roles of increased responsibility over the years. He transitioned to the Vulcan Regional Sales Manager position in 1990, to the National Sales Manager in 1996 and then assumed his current responsibilities as Vice President, Sales for Vulcan in 2002. To Jim’s credit, Vulcan FEG has achieved strong increases in both sales volume and profitability under his leadership. Vulcan is excited to announce that Debbie Hanson, CFSP has been named as Jim’s successor and will start effective January 7, 2013. The overlap of three months between Debbie’s joining Vulcan and Jim’s departure will allow for a smooth transition and continued momentum across the Vulcan, Berkel and Wolf brands. David Mouck, CEO of Robot Coupe U.S.A., Inc., recently announced that Ronald C. Snyder will join the Robot Coupe staff in the new position of Market Solutions Adviser effective January 2013. Ron will be focused on expanding opportunities in multi-unit environments throughout the Central U.S. i.e. healthcare, school foodservice, culinary schools, chains as well as responsibilities working with Independent Rep Organizations and Foodservice Distributors. Don’t Miss FEDA Box Lunch Seminar at 2013 NAFEM Sales success is a function of defining two key topics: "Good" and "Real." For your business, what is good sales growth? A good new customer? A good order? Ownership, management and salespeople need to start with the same answers so that their activities and emphasis all line up. Once these are defined, the next question is, "Are we working on things that are real?" Is this a real prospect? Am I working with the real decision-maker(s)? Do I have a real appointment? Is this a real opportunity? Too often, valuable sales, (and sales management) efforts are spent on things that just aren't real and this takes away from time that could be spent on growing profitable sales. FEDA members will have the opportunity to learn more about working on things that are real at FEDA’s Box Lunch Seminar at the NAFEM show on Friday, February 8, 2013 from 12:00 – 1:30 PM (Luncheon will open at 11:45 a.m.) FEDA thanks Michael Whiteley, VP Sales & Marketing at Hatco Corporation for sponsoring this seminar! The cost to attend is $39 per person and FEDA members can access a registration form by clicking here. Copyright January 14, 2013 FEDA First Thing We’re Looking for Industry News of Interest to Our Members.You Can Help. Help FEDA deliver more news items of interest to the dealer community. Complete the following form and fax your news to the FEDA office at 800-677-9607 or by mail to: 2250 Point Blvd. Suite 200, Elgin, IL 60123. Please include a separate sheet or press release for news that does not fit in the lines below. 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