An Unexpected Food Fight Breaks Out in the M&A Market
Commercial restaurant equipment maker Welbilt finds itself at the center of an industry bidding war.
Welbilt Inc. isn’t a household name, but most Americans have likely eaten a meal produced with its equipment at some point in their lifetime. The company makes griddles, soda dispensers, cold-brew taps, ice machines, and the technology that keeps salad bars chilled and buffets warm. Its customers include convenience stores, fast-food chains, hotels, and restaurants. And now Welbilt, based in New Port Richey, Fla., is at the center of a bidding war.
Ali Group, a closely held maker of gelato dispensers, coffee machines, and doughnut fryers, is attempting to wrest control of Welbilt from rival Middleby Corp. The interloper confirmed on May 28 that it had offered to acquire Welbilt for $23 a share in cash, or $4.6 billion including the assumption of debt. The deal Welbilt agreed to with Middleby in April is made up of stock and valued at about $21 a share based on recent prices.