Middleby Corporation has agreed to sell a 51% interest in its Residential Kitchen business to affiliates of 26North Partners LP in a transaction valued at $885 million. The deal will create a new standalone joint‑venture that will house the residential brands, while Middleby will retain a 49% non‑controlling stake. Middleby will receive approximately $540 million in upfront cash and a $135 million seller note, giving it a minority interest in the new entity.
The sale is part of Middleby’s broader portfolio‑optimization plan, which also includes a planned spin‑off of its Food Processing segment in the first half of 2026. By divesting the residential platform, Middleby can concentrate resources on its high‑margin commercial foodservice and food‑processing businesses, which have shown stronger growth and profitability. The transaction is expected to close in the first quarter of 2026, after customary closing conditions are satisfied.
The Residential Kitchen business, which includes brands such as Viking, AGA Rangemaster, La Cornue, Kamado Joe, Marvel, Novy and U‑Line, has faced headwinds from tariff‑related costs and a slowing housing market. In Q3 2025 the company recorded a $709 million non‑cash impairment charge on the residential segment, underscoring the challenges that prompted the divestiture. The sale therefore removes a segment that has been a drag on earnings while preserving a minority interest that allows Middleby to benefit from future growth in the premium residential market.
The $540 million cash proceeds will strengthen Middleby’s balance sheet, providing liquidity that can be deployed toward share repurchases, debt reduction and strategic investments in its core commercial foodservice platform. The seller note also aligns Middleby’s interests with the new joint‑venture’s performance, creating a partnership that supports continued growth of the residential brands under new ownership.
Investors have responded positively to the announcement, viewing the transaction as a clear step toward a more focused and efficient business model. Analysts have highlighted the strategic clarity and the potential for unlocking shareholder value through the separation of the residential platform from Middleby’s core operations.
"This transaction is a definitive step in our portfolio evolution and will maximize shareholder value," said CEO Tim FitzGerald. He added that the proceeds will support the company’s growth initiatives and capital‑return plans while the minority stake preserves a long‑term interest in the residential market.
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