Middleby comments on Ali Group's offer to acquire Welbilt

ELGIN - The Middleby Corp. has reiterated its commitment to complete its proposed merger with Welbilt Inc. in face of a competing offer from Ali Holding SRL.

The proposed merger between Middleby and Welbilt, announced on April 21, will create a strong commercial food service platform with an attractive portfolio of products, brands and technologies, Middleby said in a news release.

"Middleby remains firmly committed to seeing our proposed merger with Welbilt through," said Tim FitzGerald, Middleby CEO. "The Ali Group's nonbinding indication is highly opportunistic and conditional. We believe that the combination of Middleby and Welbilt can be completed with a high degree of certainty and deliver superior value to Welbilt's shareholders."

Ali Group's nonbinding proposal has a number of conditions, challenges and risks, all of which increase the uncertainty of achieving a completed transaction, Middleby said.

Under the terms of the Middleby agreement, Welbilt shareholders will receive a fixed exchange ratio of 0.124 shares of Middleby common stock for each share of Welbilt common stock, with an implied enterprise value of $4.3 billion.