Middleby armed with $1bn credit facility


Middleby has entered into a new five-year $1 billion (£640m) multi-currency senior revolving credit agreement.

The deal, which has the potential to increase to $1.350 billion (£863m) under certain circumstances, will provide the company with finance to grow its operations across the world.

The facility replaces the company’s pre-existing $600m (£384m) senior revolving credit facility, which had an original maturity of December 2012.

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The new arrangement bears an interest rate of LIBOR plus a margin of 1.5%, which is adjusted quarterly based upon the company’s leverage ratio.

Middleby CEO Selim Bassoul said the arrangement would help the business fund further acquisitions and share purchases providing it maintains certain financial ratios.

“This facility provides for increased financing availability to fund growth initiatives and greater flexibility to meet the business needs for our broadened scope of operations as we continue to expand globally,” he said.

Middleby remains one of the most acquisitive food service companies around. Over the past year it has bought Auto-Bake, Maurer-Atmos, Danfotech, Drake and Armor Inox. 18 months ago it spend £58m on acquiring UK-based catering equipment manufacturer Lincat.

Tags : acquisitionbusinesscatering equipmentcredit facilityManufacturers
Andrew Seymour

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