The Defensive Market Continues

The stock market is up in early trading. This is a strong day for value stocks while growth is flat. Defensive sectors like utilities, staples and REITs are up the most. Tesla is below $1,000 and on pace for a six-week low.

On our Buy List, shares of AFLAC (AFL) are up to a new high.

Middleby (MIDD) said it bought Masterbuilt Holdings LLC, the owner of the Kamado Joe and Masterbuilt brands with an estimated $250 million in net sales for 2021.

Headquartered in the Atlanta area, the brands are known for their outdoor residential products designed for cooking with charcoal. The purchase price of $385 million will be funded in cash and financed under Middleby’s existing senior credit facility. The transaction is expected to close in December 2021, subject to completion of closing conditions.

“The residential outdoor market has gained momentum over the past few years as consumers are spending more time in the backyard. The addition of Kamado Joe and Masterbuilt expands our offerings in this large and growing category, complementing our Lynx, Viking, Josper and EVO residential outdoor cooking brands,” said Tim FitzGerald, Middleby CEO.

“Consumers are seeking products to enhance and simplify the backyard grilling experience. The Kamado Joe and Masterbuilt brands have grown rapidly as the company’s new products have been adopted by the next generation of outdoor enthusiasts. Charcoal as an energy source for cooking continues to gain popularity due to its flavor profile, availability, and affordability. Kamado Joe and Masterbuilt are well positioned to capture the charcoal trend.”

“We are excited about the strategic fit of this acquisition, as it enhances our presence in the outdoor cooking category and expands our residential business,” Mr. FitzGerald continued. “The combination provides for further growth opportunities at Kamado Joe and Masterbuilt, as we accelerate product innovation, expand distribution, and leverage shared manufacturing and supply chain capabilities.”

Posted by on December 6th, 2021 at 10:04 am


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