ELGIN, Ill. -- Foodservice equipment manufacturer The Middleby Corp. has entered into an agreement to acquire New Star Holdings International Inc. for $188 million in cash due at closing. The acquisition is expected to close in mid-December subject to the satisfaction of closing conditions and regulatory approval.
New Star Holdings Inc. is comprised of three brands, including Star, Holman and Lang. The acquired company has annual revenues of approximately $100 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of [image-nocss] approximately $20 million. The transaction will be financed under a new senior revolving credit facility lead by Bank of America. This transaction compliments Middleby's portfolio of brands in the commercial foodservice equipment industry.
We are extremely excited to announce this transaction, said chairman and CEO Selim Bassoul. The rapid growth of the fast-casual segment and the rise of the bakery cafes are drivers for the future growth of Middleby. The acquisition of Star, Holman and Lang compliments Middleby's technologies and product offerings for these segments. Star and Holman also provides Middleby with an entry into the convenience-store segment. The demand for foodservice equipment by convenience stores is growing as these outlets continue to expand their hot food offerings. This trend is occurring domestically, as well as in emerging markets, where Middleby has strong sales and service capabilities. We anticipate this acquisition will be accretive to earnings in 2008.
The Middleby Corp., Elgin, Ill., is a leader in the foodservice equipment industry. The company develops, manufactures, markets and services a broad line of equipment used for commercial food cooking, preparation and processing.
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