Josh Harris’s Firm Strikes Deal for Middleby Unit That Makes Viking Stoves

MIDD +0.33% APO +1.01%

Billionaire investor Josh Harris’s firm, 26North Partners, struck a deal to take a controlling stake in Middleby’s kitchen-products division, executives of the companies told The Wall Street Journal.

26North is set to own 51% of the unit that houses a number of luxury cookware-equipment brands, including Viking, Lynx, La Cornue, Rangemaster and Aga. Middleby is set to own the remainder.

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The deal, unveiled Thursday after The Wall Street Journal earlier reported on it, values the unit at $885 million, Middleby Chief Executive Tim FitzGerald said in an interview.

Middleby, which has a market value of around $6 billion, designs and manufactures cooking equipment used in commercial, residential and industrial settings.

Harris, a co-founder of Apollo Global Management, launched 26North in 2022.

26North has roughly $32 billion in assets under management and focuses on private-equity, credit and insurance. Harris is also a co-owner of professional sports teams including the Philadelphia 76ers and the Washington Commanders.

Middleby shares were down more than 11% year to date through Wednesday, in part because lower foot traffic and higher food costs have hurt the restaurant industry. They closed up around 5% Thursday after the deal was announced.

The company faced additional pressure from activist investor Ed Garden, who earlier this year landed a seat on Middleby’s board. Garden, a co-founder of activist hedge fund Trian Fund Management, who has since launched his own firm, had argued Middleby was lagging behind peers.

In February, Middleby said it would spin out its food-processing business to focus on commercial food services. Its commercial food-service platform delivered about $2.4 billion in revenue last year.

FitzGerald said he sees a recovery happening across the restaurant industry and in residential, which had stalled as the housing market slowed.

26North, meanwhile, has been looking to put more money to work through private-equity deals. The Middleby transaction will mark its sixth such deal in roughly a year, Mark Weinberg, who leads 26North’s private-equity arm, said in an interview.

The firm struck its debut private-equity deal in September 2024 when it agreed to buy ArchKey Solutions, a provider of electrical, technological and specialty systems. A month later, it announced a deal for the gym chain Onelife Fitness.

The Financial Times reported in October that 26North was in talks to take control of the kitchen-products division.

Write to Miriam Gottfried at [email protected] and Lauren Thomas at [email protected]

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