ELGIN, Ill. (AP) -- Foodservice and food processing equipment company Middleby Corp. said Tuesday it will buy high-speed oven maker TurboChef Technologies Inc. for $200 million in cash and stock.
Middleby said the boards of both companies have approved the deal. Under the agreement, TurboChef stockholders will receive $3.67 in cash and 0.0486 Middleby shares for each TurboChef share they own. The offer values Atlanta-based TurboChef at $6.47 per share, a premium of 15.5 percent to its closing price of $5.60 Monday.
Middleby plans to use its sales force to bring TurboChef's technology to more customers.
The deal is expected to close in the fourth quarter pending approval by TurboChef shareholders and regulators. Middleby said it will reduce costs through the reorganization of TurboChef's residential segment, along with decreased corporate spending.
Middleby plans to finance the buyout by increasing and withdrawing money from its credit facility.
In premarket trading, TurboChef shares rose 40 cents, or 7.1 percent, to $6.