Middleby Enhances Food Processing Group With Gorreri Acquisition

The Middleby Corporation MIDD recently announced the completion of the acquisition of Gorreri Food Processing Technology. The financial terms of the transaction have been kept under wraps.Middleby’s shares lost 3.3% yesterday to close the trading session at $142.18.Based in Italy, Gorreri is a well-known provider of equipment for the baked goods industry. The company currently operates a 50,000-square-foot manufacturing facility, which was expanded to boost its growth. Gorreri generates revenues of about $20 million on an annual basis.Inside the HeadlinesThe addition of Gorreri’s expertise in advanced baked goods solutions, coupled with its innovative manufacturing processes, is expected to strengthen Middleby’s position in the food processing end market. The buyout will enable Middleby to add several complementary products to its portfolio, including turbo mixers, injecting, dosing, decorating and ultrasonic portioning solutions.This transaction is consistent with Middleby’s policy of acquiring businesses to expand market share, product offerings and customer base. In September 2024, it purchased Emery Thompson, which enhanced the company’s product offerings in the frozen dessert category. Also, in February 2024, it acquired Germany-based GBT GmbH Bakery Technology. The buyout complemented Middleby’s existing bakery brands and strengthened its European presence in large-scale baking.MIDD’s Zacks Rank, Price Performance and Earnings Estimate TrendMiddleby, with a $7.6-billion market capitalization, currently carries a Zacks Rank #4 (Sell).Lower demand for residential kitchen products due to weakness in the housing market, amid lower existing and new home sales, is affecting the performance of the Residential Kitchen Equipment Group segment. Also, softness in the restaurant industry, due to declining traffic, high wages and food cost inflation, is affecting the demand for the company's products within the Commercial Foodservice Equipment Group segment.Image Source: Zacks Investment ResearchShares of Middleby have gained 2.1% compared with its industry’s 13.4% growth in the past three months.The Zacks Consensus Estimate for 2024 earnings has decreased 5.4% to $9.12 per share in the past 60 days. Also, earnings estimates for 2025 have moved 4.3% south to $9.63 per share during the same period.Stocks to ConsiderSome better-ranked companies from the same space are discussed below.Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.RBC Bearings Incorporated RBC presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 2.5%.In the past 60 days, the consensus estimate for RBC’s fiscal 2025 earnings has increased 1.4%.Kadant Inc. KAI presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 17.2%.The Zacks Consensus Estimate for KAI’s 2024 earnings has increased 1.8% in the past 60 days.7 Best Stocks for the Next 30 DaysJust 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 +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC): Free Stock Analysis Report The Middleby Corporation (MIDD): Free Stock Analysis Report Kadant Inc (KAI): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks