RTTNews | Apr 21, 2021 07:56AM EDT

07:56 Wednesday, April 21, 2021 (RTTNews.com) - Shares of cooking and industrial process equipment maker The Middleby Corporation (MIDD) are down more than 6% in pre-market trade on Wednesday following the company's decision to acquire Welbilt, a commercial foodservice equipment company, in an all-stock transaction with an implied enterprise value of $4.3 billion.

As per the deal, Welbilt shareholders will receive 0.1240 shares of Middleby common stock for each Welbilt share they own.

Upon closing, 76% of the combined company will be owned by Middleby shareholders and 24% by Welbilt shareholders.

"Today's announcement represents a milestone event for Middleby, Welbilt and the Commercial Foodservice Equipment industry. The combination of our two great companies creates a leading player with a comprehensive product line, global footprint and advanced technologies and solutions that are well positioned to serve our rapidly changing customer needs and capitalize on emerging industry trends," said Middleby CEO Timothy FitzGerald.

MIDD closed Tuesday's regular trading at $166.83, down 1.03%. The stock is currently at $156.

Read the original article on RTTNews ( https://www.rttnews.com/3186779/stock-alert-middleby-drops-6-in-pre-market-to-buy-foodservice-equipment-firm.aspx)

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