We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Middleby Corporation (MIDD - Free Report) announced that it acquired Seattle-based Synesso. The financial terms of the transactions have been kept under wraps.
Synesso is engaged in the designing and manufacturing of espresso machines (semi-automatic). These energy-efficient machines, with low maintenance costs, are mainly used in the commercial market. Synesso’s revenue generation capacity is $10 million.
The Synesso buyout is expected to strengthen Middleby’s product offering in the beverage and coffee platform. Notably, the company already supplies traditional carafe, automated bean to cup, nitro brew and cold brew machines. Middleby’s leading brands include JoeTap, Ss Brewtech and Concordia.
Middleby’s Inorganic Initiatives
We believe that the above-mentioned transaction is consistent with the company’s policy of acquiring businesses for attracting customers, and gaining access to various regions and product lines.
In November 2019, it acquired Redwood City, CA-based Brava Home Inc — a specialist in providing advanced technology for residential cooking. The buyout is expected to strengthen Middleby’s product offering in the commercial and residential businesses.
In July 2019, Middleby acquired Packaging Progressions, Inc. The buyout has been strengthening Middleby’s product offering related to processing technologies, with the addition of two products — ProLeaver and ProStax. Middleby acquired Santa Ana, CA-based Ss Brewtech in June. Further, it bought Cooking Solutions Group of Standex International Corporation (SXI - Free Report) and Newton, MA-based Powerhouse Dynamics, Inc in April 2019.
Notably, buyouts drove Middleby’s sales by 5.8% in the third quarter of 2019.
Zacks Rank, Earnings Estimates and Price Performance
Middleby, with a market capitalization of nearly $6.5 billion, currently carries a Zacks Rank #3 (Hold).
The company anticipates gaining from product innovation, improving selling techniques, solid customer offerings and growth markets. It also expects to benefit from various profitability actions. However, Brexit-related issues, weak spending by restaurant chains and issues related to the meat processing line of operations might play spoilsport.
The Zacks Consensus Estimate for Middleby’s earnings is pegged at $6.74 for 2019 and $7.43 for 2020, reflecting increases of 3.1% and 0.5% from the respective 60-day-ago figures.
In the past 60 days, earnings estimates for both companies have improved for the current year. Further, average earnings surprise for the last four quarters was positive 28.65% for Tennant and 6.70% for Dover.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
Image: Bigstock
Middleby (MIDD) Acquires Synesso, Boosts Product Portfolio
The Middleby Corporation (MIDD - Free Report) announced that it acquired Seattle-based Synesso. The financial terms of the transactions have been kept under wraps.
Synesso is engaged in the designing and manufacturing of espresso machines (semi-automatic). These energy-efficient machines, with low maintenance costs, are mainly used in the commercial market. Synesso’s revenue generation capacity is $10 million.
The Synesso buyout is expected to strengthen Middleby’s product offering in the beverage and coffee platform. Notably, the company already supplies traditional carafe, automated bean to cup, nitro brew and cold brew machines. Middleby’s leading brands include JoeTap, Ss Brewtech and Concordia.
Middleby’s Inorganic Initiatives
We believe that the above-mentioned transaction is consistent with the company’s policy of acquiring businesses for attracting customers, and gaining access to various regions and product lines.
In November 2019, it acquired Redwood City, CA-based Brava Home Inc — a specialist in providing advanced technology for residential cooking. The buyout is expected to strengthen Middleby’s product offering in the commercial and residential businesses.
In July 2019, Middleby acquired Packaging Progressions, Inc. The buyout has been strengthening Middleby’s product offering related to processing technologies, with the addition of two products — ProLeaver and ProStax. Middleby acquired Santa Ana, CA-based Ss Brewtech in June. Further, it bought Cooking Solutions Group of Standex International Corporation (SXI - Free Report) and Newton, MA-based Powerhouse Dynamics, Inc in April 2019.
Notably, buyouts drove Middleby’s sales by 5.8% in the third quarter of 2019.
Zacks Rank, Earnings Estimates and Price Performance
Middleby, with a market capitalization of nearly $6.5 billion, currently carries a Zacks Rank #3 (Hold).
The company anticipates gaining from product innovation, improving selling techniques, solid customer offerings and growth markets. It also expects to benefit from various profitability actions. However, Brexit-related issues, weak spending by restaurant chains and issues related to the meat processing line of operations might play spoilsport.
The Zacks Consensus Estimate for Middleby’s earnings is pegged at $6.74 for 2019 and $7.43 for 2020, reflecting increases of 3.1% and 0.5% from the respective 60-day-ago figures.
The Middleby Corporation Price and Consensus
The Middleby Corporation price-consensus-chart | The Middleby Corporation Quote
Shares of the company have gained 3.1% compared with the industry’s 11.3% growth in the past three months.
Stocks to Consider
Two better-ranked stocks in the same industry are Tennant Company (TNC - Free Report) and Dover Corporation (DOV - Free Report) . While Tennant sports a Zacks Rank #1 (Strong Buy), Dover carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for both companies have improved for the current year. Further, average earnings surprise for the last four quarters was positive 28.65% for Tennant and 6.70% for Dover.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>