The Middleby Corporation has further strengthened its financial muscle by inking new credit terms that could be worth as much as $3 billion (£2.3 billion) to the firm.
The foodservice equipment manufacturing giant has entered into a new five-year $2.5 billion (£1.9 billion) multi-currency senior revolving credit agreement, with the potential under certain circumstances to increase to $3 billion. The move will help fuel its acquisition drive as it looks to expand its sales volumes and product portfolio.
Middleby said the facility replaces its pre-existing $1.25 billion (£957m) senior revolving credit facility, which had an original maturity of August 2017.
The new facility bears an interest rate of LIBOR plus a margin of 1.5%, which is adjusted quarterly based upon the company’s leverage ratio.
The new facility provides for availability to fund acquisitions and share repurchases so long as the company maintains certain financial ratios.
Middleby remains one the most acquisitive companies in the business. Its last purchase came in May 2016 when it snapped up Follett Corporation, the US ice machine manufacturer. Follett turns over around $140m (£107m) a year.