Middleby Corporation's stock experienced a pre-market plunge of 6.93% following the company's announcement of its intent to separate its food processing business into a standalone public company. The spin-off, expected to be completed by early 2026, aims to create two independent leaders in their respective industries.

The separation will establish Middleby Food Processing as a focused entity specializing in industrial protein, bakery, and snack processing solutions. Meanwhile, Middleby RemainCo will concentrate on commercial foodservice and residential kitchen technologies, leveraging its innovation capabilities and premium brands.

The move is part of Middleby's strategic review to unlock the company's full value potential. The spin-off is expected to enable heightened strategic focus, optimized capital structures, and financial flexibility for growth opportunities in each standalone entity.