Middleby to use senior facility for Welbilt debt in acquisition

Chicago, April 21 – Middleby Corp. will use its committed senior secured facility to refinance Welbilt, Inc.’s existing debt as part of a broader all-stock acquisition with an implied enterprise value of $4.3 billion, according to a press release.

Based on the expected pro forma leverage ratio at closing, the interest on the incremental financing would be approximately Libor plus 162.5 basis points.

The transaction is expected to close in late 2021, subject to customary closing conditions, including regulatory and Middleby and Welbilt shareholder approvals.

Guggenheim Securities, LLC served as financial adviser to Middleby. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel.

Morgan Stanley & Co. LLC served as financial adviser to Welbilt. Gibson, Dunn & Crutcher LLP served as legal counsel.

Middleby is a foodservice equipment company based in Elgin, Ill. Welbilt is a New Port Richey, Fla.-based commercial foodservice equipment company.

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