August 12, 2008 / 12:44 PM / 9 years ago

UPDATE 1-Middleby to buy TurboChef for $200 mln

(Recasts; adds details)

Aug 12 (Reuters) - Food equipment firm Middleby Corp (MIDD.O) said it agreed to buy TurboChef Technologies Inc OVEN.O, a maker of speed-cooking ovens, for about $200 million in a stock and cash deal.

Middleby said TurboChef shareholders will receive a combination of $3.67 in cash and 0.0486 Middleby common shares per TurboChef share.

The implied value of each TurboChef share is $6.47 per share, based on the closing price of Middleby shares on Monday. This represents a premium of about 15.5 percent to Monday’s closing price of TurboChef shares.

Middleby expects to finance the deal from an existing revolving credit facility and sees the transaction closing in the fourth quarter of 2008.

TurboChef had been posting losses for the last four quarters and cut 14 jobs in the first quarter as a cost-cutting measure.

    Last year, Middleby acquired the assets of Wells Bloomfield, a maker of cooking equipments and beverage systems.

    Shares of Middleby closed at $57.60 Monday on Nasdaq. Shares of TurboChef closed at $5.60 Monday on the same exchange. (Reporting by Adheesha Sarkar in Bangalore; Editing by Jarshad Kakkrakandy)

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