Middleby Buys Viking Range For $380 Million

January 14, 2013
Middleby
Buys
Viking Range
for $380 Million
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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.
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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
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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
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