What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-03-03 compared with 2020-02-26 · 100 added, 141 removed, 180 unchanged (57% of the section changed)

10 unchanged sentences

Commercial Foodservice Equipment Group

The Commercial Foodservice Equipment Group has a broad portfolio of foodservice equipment, which enable it to serve virtually any cooking, warming, refrigeration, freezing and beverage application within a commercial kitchen or foodservice operation.

This equipment is used across all types of foodservice operations, including quick-service restaurants, full-service restaurants, convenience stores, retail outlets, hotels and other institutions.

This commercial foodservice equipment is marketed under a portfolio of sixty brands, including Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Powerhouse Dynamics, QualServ, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Taylor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells and Wunder-Bar.

The products offered by this group include conveyor ovens, combi-ovens, convection ovens, baking ovens, proofing ovens, deck ovens, speed cooking ovens, hydrovection ovens, ranges, fryers, rethermalizers, steam cooking equipment, food warming equipment, catering equipment, heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, induction cooking equipment, countertop cooking equipment, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, coldrooms, ice machines, freezers, soft serve ice cream equipment, coffee and beverage dispensing equipment, home and professional craft brewing equipment and IoT solutions.

The Commercial Foodservice Equipment Group has a broad portfolio of foodservice equipment, which enable it to serve virtually any cooking, warming, holding, refrigeration, freezing and beverage application within a commercial kitchen or foodservice operation.

This equipment is used across all types of foodservice operations, including quick-service restaurants, full-service restaurants, ghost kitchens, convenience stores, supermarkets, retail outlets, hotels and other institutions.

This commercial foodservice equipment is marketed under a portfolio of sixty-six brands, including Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Deutsche Beverage, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Ink Kegs, Inline Filling Systems, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Meheen, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Tank, Taylor, Thor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells, Wild Goose and Wunder-Bar.

Food Processing Equipment Group

The Food Processing Equipment Group offers a broad portfolio of processing solutions for customers producing pre-cooked meat products, such as hot dogs, dinner sausages, poultry and lunchmeats and baked goods such as muffins, cookies and bread.

Through its broad line of products, the company is able to deliver a wide array of cooking solutions to service a variety of food processing requirements demanded by its customers.

The company can offer highly integrated solutions that provide a food processing operation a uniquely integrated solution providing for the highest level of food quality, product consistency, and reduced operating costs resulting from increased product yields, increased capacity, greater throughput and reduced labor costs through automation.

This food processing equipment is marketed under a portfolio of twenty-two brands, including Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CVP Systems, Danfotech, Drake, Emico, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, M-TEK, Pacproinc, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Thurne and Ve.Ma.C.

The Food Processing Equipment Group offers a broad portfolio of processing solutions for customers producing protein products, such as bacon, salami, hot dogs, dinner sausages, poultry and lunchmeats and bakery products, such as muffins, cookies, crackers, pies, bread and buns.

Through its broad line of products, the company is able to deliver a wide array of food preparation, thermal processing and slicing/packaging solutions to service a variety of food processing requirements demanded by its customers.

The company can offer highly integrated full processing line solutions that provide a food processing operation a uniquely integrated solution providing for the highest level of food quality, product consistency, and reduced operating costs resulting from increased product yields, increased capacity, greater throughput and reduced labor costs through automation.

This food processing equipment is marketed under a portfolio of twenty-one brands, including Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CV-Tek, Danfotech, Deutsche Process, Drake, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, Pacproinc, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Thurne and Ve.Ma.C.

The products offered by this group include a wide array of cooking and baking solutions, including batch ovens, baking ovens, proofing ovens, conveyor belt ovens, continuous processing ovens, frying systems and automated thermal processing systems.

The company also provides a comprehensive portfolio of complementary food preparation equipment such as grinders, slicers, reduction and emulsion systems, mixers, blenders, battering equipment, breading equipment, seeding equipment, water cutting systems, food presses, food suspension equipment, filling and depositing solutions and forming equipment, as well as a variety of automated loading and unloading systems, food safety, food handling, freezing, defrosting and packaging equipment.

The company also provides a comprehensive portfolio of complementary food preparation equipment such as grinders, slicers, reduction and emulsion systems, mixers, blenders, formers, battering equipment, breading equipment, seeding equipment, water cutting systems, food presses, food suspension equipment, filling and depositing solutions and forming equipment, as well as a variety of automated loading and unloading systems, food safety, food handling, freezing, defrosting and packaging equipment.

This portfolio of equipment can be integrated to provide customers a highly efficient and customized solution.

1 unchanged sentence

The Residential Kitchen Equipment Group manufactures, sells and distributes kitchen equipment for the residential market.

Principal product lines of this group are ranges, cookers, stoves, ovens, refrigerators, dishwashers, microwaves, cooktops, wine coolers, ice machines, ventilation equipment and outdoor equipment .

These products are sold and marketed under a portfolio of nineteen brands, including AGA, AGA Cookshop, Brava, EVO, Fired Earth, Heartland, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line and Viking.

Principal product lines of this group are ranges, cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, ventilation equipment and outdoor equipment.

These products are sold and marketed under a portfolio of seventeen brands, including AGA, AGA Cookshop, Brava, EVO, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line and Viking.

Acquisition Strategy

The company has pursued a strategy to acquire and assemble a leading portfolio of brands and technologies for each of its three business segments.

Over the past two years, the company has completed sixteen acquisitions to add to its portfolio of brands and technologies of the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group.

These acquisitions have added nineteen brands to the Middleby portfolio and positioned the company as a leading provider of equipment in each respective industry.

Significant acquisitions included Taylor Company, acquired for a purchase price of $1.0 billion , net of cash acquired, and Cooking Solutions Group Inc., acquired for a purchase price of $106.1 million , net of cash acquired.

Over the past two years, the company has completed thirteen acquisitions to add to its portfolio of brands and technologies of the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group.

These acquisitions have added seventeen brands to the Middleby portfolio and positioned the company as a leading provider of equipment in each respective industry.

Significant acquisitions included Cooking Solutions Group Inc., acquired for a purchase price of $106.1 million, net of cash acquired.

All other acquisitions were acquired for an aggregate purchase price totaling $297.8 million, net of cash acquired.

Commercial Foodservice Equipment Group

The company completed its acquisition of certain assets of JoeTap, a leading innovator of on-demand nitro and cold brew coffee dispensing equipment for the commercial foodservice industry.

The company completed its acquisition of all of the capital stock of Firex S.r.l.

("Firex"), a leading manufacturer of steam cooking equipment for the commercial foodservice industry located in Sedico, Italy.

The company completed its acquisition of all of the issued share capital of Josper S.A.

("Josper"), a leading manufacturer of charcoal grill and oven cooking equipment for commercial foodservice and residential industries located in Pineda de Mar, Spain.

The company completed its acquisition of all of the capital stock of the Taylor Company ("Taylor"), a world leader in beverage solutions, soft serve and ice cream dispensing equipment, frozen drink machines, and automated double-sided grills, for the commercial foodservice industry, located in Rockton, Illinois.

• December 2018:

The company completed its acquisition of all of the capital stock of the Crown Food Service Equipment, Ltd.

("Crown"), a leading design and manufacturer of steam cooking equipment for the commercial foodservice industry located in Toronto, Canada.

December 2018:

The company completed its acquisition of all of the capital stock of EVO America, Inc.

("EVO"), a leading design and manufacturer of ventless cooking equipment for the commercial foodservice industry, located near Portland, Oregon.

• April 2019:

The company completed its acquisition of all of the capital stock of Cooking Solutions Group, Inc.

("Cooking Solutions Group") from Standex International Corporation, which consists of the brands APW Wyott, Bakers Pride, BKI and Ultrafryer and locations in Texas, South Carolina and Mexico.

• April 2019:

The company completed the acquisition of all of the capital stock of Powerhouse Dynamics, Inc.

("Powerhouse"), a leader in cloud-based IoT solutions for the commercial foodservice industry located near Boston.

• April 2019:

The company completed the acquisition of all of the assets related to the Starline Product line ("Starline") non-carbonated beverage dispensers for the commercial foodservice industry.

3 unchanged sentences

("Synesso"), a designer and manufacturer of semi-automatic espresso machines for the commercial foodservice industry, located in Seattle, Washington.

Food Processing Equipment Group

• January 2020:

The company completed its acquisition of the RAM fry dispenser product line ("RAM"), a leader in automated fry dispensers, located in Red Wing, Minnesota.

• February 2020:

The company completed its acquisition of all of the capital stock of Hinds-Bock Corporation ("Hinds-Bock"), a leading manufacturer of solutions for filling and depositing bakery and food product located in Bothell, Washington.

The company completed its acquisition of all of the capital stock of Ve.Ma.C S.r.l.

("Ve.Ma.C"), a leading designer and manufacturer of handling, automation and robotics solutions for protein food processing lines located in Castelnuovo Rangone, Italy.

October 2018:

The company completed its acquisition of all of the capital stock of the M-TEK Corporation ("M-TEK"), a leading manufacturer of Modified Atmospheric Packaging (MAP) systems located in Elgin, Illinois.

The company completed its acquisition of all of the capital stock of DBT Holdings, LLC ("Deutsche"), a leader in beverage brewing and processing systems located in Charlotte, North Carolina.

• December 2020:

The company completed its acquisition of all of the capital stock of MEP FMS Holdings, LLC ("Wild Goose"), a leader in the craft beer industry focused on providing the best canning and bottling integrity in the industry, located in Louisville, Colorado and Venice, Florida.

• December 2020:

The company completed its acquisition of the properties and assets used to conduct the business of United Foodservice Equipment Limited, a business that purchases and sells foodservice equipment located in Hong Kong, and its affiliate, Zhuhai United Foodservice Equipment Limited (collectively, "United Foodservice Equipment Zhuhai"), a business that manufactures and sells foodservice equipment located in China.

Food Processing Equipment Group

The company completed the acquisition of all of the capital stock of Packaging Progressions, Inc.

7 unchanged sentences

The company's end-user customers include:

(i) fast food, fast casual and quick-service restaurants, (ii) full-service restaurants, including casual-theme restaurants, (iii) retail outlets, such as convenience stores, supermarkets and department stores and (iv) public and private institutions, such as hotels, resorts, schools, hospitals, long-term care facilities, correctional facilities, stadiums, airports, corporate cafeterias, military facilities and government agencies.

(i) fast food, fast casual and quick-service restaurants, including ghost kitchens, (ii) full-service restaurants, including casual-theme restaurants, (iii) retail outlets, such as convenience stores, supermarkets and department stores and (iv) public and private institutions, such as hotels, resorts, schools, hospitals, long-term care facilities, correctional facilities, stadiums, airports, corporate cafeterias, college and universities, military facilities and government agencies.

The company's domestic sales are primarily through independent dealers and distributors and are marketed by the company's sales personnel and network of independent manufacturers' representatives.

3 unchanged sentences

Included in these customers are several large multi-national restaurant chains, which account for a meaningful portion of the company's business, although no single customer accounts for more than 10% of net sales.

Over the past several decades, the commercial foodservice equipment industry has enjoyed steady growth in the United States due to the development of new quick-service and casual-theme restaurant chain concepts, the expansion of foodservice into nontraditional locations such as convenience stores and store equipment modernization driven by efforts to improve efficiencies within foodservice operations.

Over the past several decades, the commercial foodservice equipment industry has enjoyed steady growth in the United States due to the development of new quick-service and casual-theme restaurant chain concepts, the expansion of foodservice into nontraditional locations such as convenience stores and retail outlets, as well as store equipment modernization driven by efforts to improve efficiencies within foodservice operations.

In the international markets, foodservice equipment manufacturers have been experiencing growth due to expanding international economies and increased opportunity for expansion by U.S.

1 unchanged sentence

The company believes that the worldwide commercial foodservice equipment market has sales in excess of $35.0 billion.

The cooking, warming, refrigeration, freezing and beverage dispensing equipment segment of this market is estimated by management to exceed $3.0 billion in North America and $5.0 billion worldwide.

The company believes that continuing growth in demand for foodservice equipment will result from the development of new restaurant concepts in the U.S.

and the expansion of U.S.

and foreign chains into international markets, the replacement and upgrade of existing equipment and new equipment requirements resulting from menu changes.

and foreign chains into international markets, the replacement and upgrade of existing equipment and new equipment requirements resulting from menu changes, menu diversity and consumer food trends.

Food Processing Equipment Industry

1 unchanged sentence

Customers include several large international food processing companies, which account for a significant portion of the revenues of this business segment, although none of which is greater than 10% of net sales.

A large portion of the company's revenues have been generated from producers of pre-cooked meat products such as hot dogs, dinner sausages, poultry, and lunchmeats and producers of baked goods such as muffins, cookies and bread;

however, the company believes that it can leverage its expertise and product development capabilities in thermal processing to organically grow into new end markets.

A large portion of the company's revenues have been generated from producers of protein products such as bacon, salami, hot dogs, dinner sausages, poultry, and lunchmeats and producers of bakery products, such as muffins, cookies, crackers, pies, bread and buns;

however, the company believes that it can leverage its expertise and product development capabilities in thermal processing to organically grow into new end markets and offers unique full processing line solutions.

Food processing has quickly become a highly competitive landscape dominated by a few large conglomerates that possess a variety of food brands.

1 unchanged sentence

In recent years, food processors have had to conform to the demands of “big-box” retailers and the restaurant industry, including, most importantly, greater product consistency and exact package weights.

Food processors are beginning to realize that their old equipment is no longer capable of efficiently producing adequate uniformity in the large product volumes required, and they are turning to equipment manufacturers that offer product consistency, innovative packaging designs and other solutions.

To protect their own brands and reputations, retailers and large restaurant chains are also dictating food safety standards that are often more strict than government regulations.

A number of factors, including raw material prices, labor and health care costs, are driving food processors to focus on ways to improve their generally thin profitability margins.

Food processors are beginning to realize that their old equipment is no longer capable of efficiently producing adequate uniformity in the large product volumes required, and they are turning to equipment manufacturers that offer better process control for proven product consistency, innovative packaging designs and other solutions.

To protect their own brands and reputations, retailers and large restaurant chains are also dictating food safety standards that are often stricter than government regulations.

A number of factors, including raw material prices, cost of ownership of their equipment, labor and health care costs, are driving food processors to focus on ways to improve their generally thin profitability margins.

In order to increase the profitability and efficiency in processing plants, food processors pay increasingly more attention to the performance of their machinery and the flexibility in the functionality of the equipment.

4 unchanged sentences

As industrializing countries create more jobs, consumers in these countries will have the means to buy pre-cooked food products.

In industrialized regions, such as Western Europe and the U.S., consumers are demanding more pre-

cooked and convenience food products, such as deli tray variety packs, frozen food products and ready-to-eat varieties of ethnic foods.

In industrialized regions, such as Western Europe and the U.S., consumers are demanding more pre-cooked and convenience food products, such as deli tray variety packs, frozen food products and ready-to-eat varieties of ethnic foods.

The global food processing equipment industry is highly fragmented, large and growing.

The company estimates demand for food processing equipment is approximately $5.0 billion in North America and $40.0 billion worldwide.

The company’s product offerings compete in a subsegment of the total industry, and the relevant market size for its products is estimated by management to exceed $3.0 billion in North America and $5.0 billion worldwide.

The company estimates demand for food processing equipment is in excess of $50.0 billion worldwide.

Residential Kitchen Equipment Industry

The company’s end-users include customers with high-end residential kitchens.

The premium segment of the residential kitchen equipment industry is estimated to be in excess of $1.0 billion annually in North America and $3.0 billion worldwide.

The market potential for such equipment has continued to broaden due to an increase in interest from the consumer to have professional style higher performing appliances in their home.

The kitchen has been an area in which consumers have invested over the past several decades to increase the personal satisfaction and the value of their home.

Other important factors which affect the market size and growth include the level of new home starts, home remodels and general macro-economic factors.

The market potential for such equipment has continued to broaden due to an increase in interest from the consumer to have professional styled appliances with commercial inspired, higher performing features in their home.

The kitchen has been the main area in which consumers have invested the most money over the past several decades to increase the personal satisfaction and the value of their home.

Other important factors which affect the market size and growth include the level of new home starts, increase in home renovations and general macro-economic factors.

Macro-economic factors such as GDP growth, employment rates, inflation and consumer confidence, which impact the overall economy, impact the residential kitchen equipment industry and cause variability in the revenues at this segment.

The residential kitchen appliance industry is estimated to be in excess of $230 billion worldwide.

Commercial Foodservice Equipment Group

The backlog of orders for the Commercial Foodservice Equipment Group was $128.7 million at December 28, 2019 , most all of which is expected to be filled during 2020.

The acquired EVO, Cooking Solutions Group, Powerhouse, Ss Brewtech and Synesso businesses accounted for $16.3 million of the backlog.

The backlog of orders for the Commercial Foodservice Equipment Group was $238.2 million at January 2, 2021, most all of which is expected to be filled during 2021.

The Commercial Foodservice Equipment Group's backlog was $128.7 million at December 28, 2019.

The acquired Deutsche and Wild Goose businesses accounted for $27.9 million of the backlog.

The backlog is not necessarily indicative of the level of business expected for the year, as there is generally a short time between order receipt and shipment for the majority of this segment's products.

Food Processing Equipment Group

The backlog of orders for the Food Processing Equipment Group was $137.8 million at December 28, 2019 , all of which is expected to be filled during 2020.

The acquired Pacproinc business accounted for $5.2 million of the backlog.

The backlog of orders for the Food Processing Equipment Group was $131.2 million at January 2, 2021, all of which is expected to be filled during 2021.

The Food Processing Equipment Group's backlog was $137.8 million at December 28, 2019.

Residential Kitchen Equipment Group

The backlog of orders for the Residential Kitchen Equipment Group was $41.0 million at December 28, 2019 , all of which is expected to be filled during 2020.

The acquired Brava business accounted for less than $0.1 million of the backlog.

The backlog of orders for the Residential Kitchen Equipment Group was $153.3 million at January 2, 2021, all of which is expected to be filled during 2021.

The Residential Kitchen Equipment Group's backlog was $41.0 million at December 28, 2019.

Marketing and Distribution

11 unchanged sentences

Internationally, the company maintains sales and distribution offices along with global sales managers supported by a network of independent sales representatives.

The company’s sale process is highly consultative due to the highly technical nature of the equipment.

During a typical sales process, a salesperson makes several visits to the customer’s facility to conceptually discuss the production requirements, footprint and configuration of the proposed equipment.

The company’s sale process is highly consultative due to the highly technical nature of the equipment, especially in the case of the full processing line solutions.

During a typical sales process, sales people make several visits to the customer’s facility to conceptually discuss the production requirements, footprint and configuration of the proposed equipment.

The company employs a technically proficient sales force, many of whom have previous technical experience with the company as well as education backgrounds in food science.

The sales strategy of the company is fostered with Protein and Bakery Innovation Centers in Chicago, Dallas and India, that are available for development with technical performance and product testing for customers.

Residential Kitchen Equipment Group

The company’s products are marketed through a network of distributors, dealers, designers, and home builders to the residential customers.

The company’s products are marketed through a network of distributors, dealers, designers, select online retailers and home builders to the residential customers.

The company markets and sells its products to these channels through a company-employed sales force.

The company’s products are distributed through a combination of an independent network of distributors and its wholly owned distribution operations.

The company's wholly owned distribution operations were established in connection with the Viking and related Viking Distributors' acquisitions and include two primary customer support centers and regional warehouse and logistic operations, which stock products and service parts for the respective region.

The company's wholly owned distribution operations include two primary customer support centers and regional warehouse and logistic operations, which stock products and service parts for the respective region.

To supplement the sales and distribution network, the company has invested in residential showrooms in Chicago, New York City, Orange County and Dallas (coming soon in 2021).

Marketing support is provided to and coordinated with its network of dealers, designers, and home builders sales partners to allow for coordinated efforts to market jointly to the end-user customers.

9 unchanged sentences

The company maintains sufficient service parts inventory to ensure short lead times for service calls.

It is critical to major foodservice chains that equipment providers be capable of supporting equipment on a worldwide basis.

The company's international service network covers over 100 countries with thousands of service technicians trained in the installation and service of the company's products and supported by internationally-based service managers along with the factory-based technical service engineers.

Food Processing Equipment Group

21 unchanged sentences

and worldwide although some of its competitors are units of operations that are larger than the company and possess greater financial and personnel resources.

Among the company's major competitors to the Commercial Foodservice Equipment Group are:

Welbilt, Inc.;

Vulcan-Hart and Hobart Corporation, subsidiaries of Illinois Tool Works Inc.;

Among the company's major competitors to the Commercial Foodservice Equipment Group are the Ali Group S.r.l.;

Duke Manufacturing;

Groen, a subsidiary of Dover Corporation;

and the Ali Group.

Hobart Corporation and Vulcan-Hart, subsidiaries of Illinois Tool Works Inc.;

Panasonic Corporation;

and Welbilt, Inc.

Major competitors to the Food Processing Equipment Group include AMF Bakery Systems, The GEA Group, JBT Technologies, Marel, and Provisur.

The residential kitchen appliance sector is highly competitive and includes a number of large global competitors including, Whirlpool Corporation, Electrolux, GE Appliances, LG Corporation, Panasonic Corporation and Samsung Group.

However, within the premium segment of this kitchen equipment market, there are fewer competitors and the company’s competition includes Wolf and Sub-Zero, subsidiaries of Sub-Zero Group, Inc.;

Thermador, Bosch and Gaggenau, subsidiaries of Bosch Siemens;

The residential kitchen appliance sector is highly competitive and includes a number of large global competitors including, Electrolux, GE Appliances, LG Corporation, Panasonic Corporation, Samsung Group and Whirlpool Corporation.

However, within the premium segment of this kitchen equipment market, there are fewer full line competitors and the company’s competition includes Bertazzoni;

Bosch, Gaggenau, and Thermador, subsidiaries of Bosch Siemens;

Dacor, subsidiary of Samsung Electronics America;

and Sub-Zero and Wolf, subsidiaries of Sub-Zero Group, Inc.

Manufacturing and Quality Control

1 unchanged sentence

The company has from time to time either consolidated manufacturing facilities producing similar product or transferred production of certain products to another existing operation with a higher level of expertise or efficiency.

The Commercial Foodservice Equipment Group manufactures its products in twenty domestic and seventeen international production facilities.

These production facilities are located in Fort Smith, Arkansas;

Brea, California;

Vacaville, California;

Windsor, California;

Elgin, Illinois;

Mundelein, Illinois;

Rockton, Illinois;

Menominee, Michigan;

Bow, New Hampshire;

Fuquay-Varina, North Carolina;

Dayton, Ohio;

Tualatin, Oregon;

Bethlehem, Pennsylvania;

Easton, Pennsylvania;

Smithville, Tennessee;

Carrollton, Texas;

Essex Junction, Vermont (two separate facilities);

Redmond, Washington;

Seattle, Washington;

New South Wales, Australia;

Toronto, Canada;

Humen, China, Qingdao City, China;

Brøndby, Denmark;

Randers, Denmark;

Viljandi, Estonia;

Nusco, Italy;

Scandicci, Italy;

Sedico, Italy;

Nogales, Mexico;

Laguna, the Philippines;

Wislina, Poland;

Pineda de Mar, Spain;

Fristad, Sweden;

Lincoln, the United Kingdom;

and Wrexham, the United Kingdom.

The Commercial Foodservice Equipment Group manufactures its products in twenty-three domestic and nineteen international production facilities.

The Food Processing Equipment Group manufactures its products in eleven domestic and six international production facilities.

These production facilities are located in Gainesville, Georgia;

Elgin, Illinois;

Elk Grove, Illinois;

Algona, Iowa;

Clayton, North Carolina;

Maysville, Oklahoma;

Souderton, Pennsylvania;

Plano, Texas;

Waynesboro, Virginia;

Bothell, Washington;

Lodi, Wisconsin;

Aalborg, Denmark;

Mauron, France;

Reichenau, Germany;

Bangalore, India;

Castelnuovo Rangone, Italy and Norwich, the United Kingdom.

The Residential Kitchen Equipment Group manufactures its products in six domestic and five international production facilities.

These production facilities are located in Greenville, Michigan;

Greenwood, Mississippi (four separate facilities);

Brown Deer, Wisconsin;

Saint Ouen L'aumone, France;

Waterford, Ireland;

Ketley, the United Kingdom;

Leamington Spa, the United Kingdom and Nottingham, the United Kingdom.

Metal fabrication, finishing, sub-assembly and assembly operations are conducted at each manufacturing facility.

The Residential Kitchen Equipment Group manufactures its products in six domestic and four international production facilities.

Properties for a list of the principal domestic and international manufacturing facilities by segment.

Metal fabrication, finishing, sub-assembly and assembly operations are typically conducted at each manufacturing facility.

Equipment installed at individual manufacturing facilities includes numerically controlled turret presses and machine centers, shears, press brakes, welding equipment, polishing equipment, CAD/CAM systems and product testing and quality assurance measurement devices.

15 unchanged sentences

The company believes its future success will depend in part on its ability to develop new products and to improve existing products.

Much of the company's research and development efforts at the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group are directed to the development and improvement of products designed to reduce cooking and processing time, increase capacity or throughput, reduce energy consumption, minimize labor costs, improve product yield and improve safety, while maintaining consistency and quality of cooking production and food preparation.

Much of the company's research and development efforts at the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group are directed to the development and improvement of products designed to reduce cooking and processing time, increase capacity or throughput, reduce energy consumption, minimize labor costs, improve product yield and improve customer, employee and environmental safety, while maintaining consistency and quality of cooking production and food preparation.

The company's efforts have also been focused on IoT solutions which allow customers to connect, analyze and control equipment, while delivering operational efficiencies.

The company has identified these issues as key concerns for most of its customers.

3 unchanged sentences

See Note 3(n) to the Consolidated Financial Statements for further information on the company's research and development activities.

The company’s revenues at the Commercial Foodservice Equipment Group historically have been slightly stronger in the second and third quarters due to increased purchases from customers involved with the catering business and institutional customers, particularly schools, during the summer months.

Revenues at the Residential Kitchen Equipment Group are historically stronger in the second and third quarters, due to increased purchases of outdoor cooking equipment and greater new home construction and remodels during the summer months, and the fourth quarter, due to increased holiday purchases in the European markets.

As a result of the COVID-19 pandemic, typical patterns of seasonality as previously mentioned were disrupted.

Trademarks, Patents and Licenses

The company has developed, acquired and assembled a leading portfolio of trademarks and trade names.

The company believes that these trademarks and trade names provide for a significant competitive advantage due to a long-standing recognition in the marketplace with customers, restaurant operators, distribution partners, sales and service agents, and foodservice consultants that specify foodservice equipment.

The company has historically maintained a high level of market share of products sold with these trademarks and trade names.

The company's leading portfolio of trade names of its Commercial Foodservice Equipment Group include Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Blodgett Range, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, Powerhouse Dynamics, QualServ, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Taylor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells and Wunder-Bar.

The company’s leading portfolio of trade names of its Food Processing Equipment Group include Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CVP Systems, Danfotech, Drake, Emico, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, M-TEK, Pacproinc, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Thurne and Ve.Ma.C.

The company’s leading portfolio of trade names of its Residential Kitchen Equipment Group include AGA, AGA Cookshop, Brava, EVO, Fired Earth, Heartland, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line and Viking.

The company believes that these trademarks and trade names help the company compete in the marketplace due to their recognition with customers, restaurant operators, distribution partners, sales and service agents, and foodservice consultants that specify foodservice equipment.

The company's leading portfolio of trade names of its Commercial Foodservice Equipment Group include Anets, APW Wyott, Bakers Pride, Beech, BKI, Blodgett, Blodgett Combi, Bloomfield, Britannia, Carter-Hoffmann, Celfrost, Concordia, CookTek, Crown, CTX, Desmon, Deutsche Beverage, Doyon, Eswood, EVO, Firex, Follett, Frifri, Giga, Globe, Goldstein, Holman, Houno, IMC, Induc, Ink Kegs, Inline Filling Systems, Jade, JoeTap, Josper, L2F, Lang, Lincat, MagiKitch’n, Market Forge, Marsal, Meheen, Middleby Marshall, MPC, Nieco, Nu-Vu, PerfectFry, Pitco, QualServ, RAM, Southbend, Ss Brewtech, Star, Starline, Sveba Dahlen, Synesso, Tank, Taylor, Thor, Toastmaster, TurboChef, Ultrafryer, Varimixer, Wells, Wild Goose and Wunder-Bar.

The company’s leading portfolio of trade names of its Food Processing Equipment Group include Alkar, Armor Inox, Auto-Bake, Baker Thermal Solutions, Burford, Cozzini, CV-Tek, Danfotech, Deutsche Process, Drake, Glimek, Hinds-Bock, Maurer-Atmos, MP Equipment, Pacproinc, RapidPak, Scanico, Spooner Vicars, Stewart Systems, Thurne and Ve.Ma.C.

The company’s leading portfolio of trade names of its Residential Kitchen Equipment Group include AGA, AGA Cookshop, Brava, EVO, La Cornue, Leisure Sinks, Lynx, Marvel, Mercury, Rangemaster, Rayburn, Redfyre, Sedona, Stanley, TurboChef, U-Line and Viking.

The company holds a broad portfolio of patents and licenses covering technology and applications related to various products, equipment and systems.

Management believes the expiration of any one of these patents would not have a material adverse effect on the overall operations or profitability of the company.

As of December 28, 2019 , 9,778 persons were employed by the company and its subsidiaries among the various groups as described below.

Human Capital

As of January 2, 2021, 9,289 persons were employed by the company and its subsidiaries among the various groups as described below.

5,413 employees are located in the United States and the remaining employees are located outside of the United States.

Unionized employees accounted for approximately 6% of the company’s workforce as of January 2, 2021.

Management believes that the relationships between employees and management are good.

The company believes its success is a direct result of the people employed around the world.

The company strives to create a culture that encourages and celebrates collaboration, creativity and confidence while maintaining an environment based on ethical values.

The goal is to create a workplace that enables employees to develop their individual paths toward their career goals and encourages a long-term working relationship with the company.

Commercial Foodservice Equipment Group

As of December 28, 2019 , 5,999 persons were employed within the Commercial Foodservice Equipment Group.

As of January 2, 2021, 5,427 persons were employed within the Commercial Foodservice Equipment Group.

Of this amount, 2,298 were management, administrative, sales, engineering and supervisory personnel;

2 unchanged sentences

Included in these totals were 2,109 individuals employed outside of the United States, of which 1,105 were management, sales, administrative and engineering personnel, 880 were hourly production non-union workers and 124 were hourly production union workers, who participate in an employee cooperative.

At its Windsor, California facility, the company has a union contract with the Sheet Metal Workers International Association that expires on December 31, 2020.

At its Windsor, California facility, the company has a union contract with the Sheet Metal Workers International Association that expired on December 31, 2020.

Contract negotiations have extended into 2021 and are ongoing.

At its Elgin, Illinois facility, the company has a union contract with the International Brotherhood of Teamsters that expires on July 31, 2022.

3 unchanged sentences

Food Processing Equipment Group

As of December 28, 2019 , 1,532 persons were employed within the Food Processing Equipment Group.

As of January 2, 2021, 1,520 persons were employed within the Food Processing Equipment Group.

Of this amount, 786 were management, administrative, sales, engineering and supervisory personnel;

6 unchanged sentences

Residential Kitchen Equipment Group

As of December 28, 2019 , 2,205 persons were employed within the Residential Kitchen Equipment Group.

As of January 2, 2021, 2,301 persons were employed within the Residential Kitchen Equipment Group.

Of this amount, 977 were management, administrative, sales, engineering and supervisory personnel and 1,324 were hourly production workers.

1 unchanged sentence

Management believes that the relationships between employees and management are good.

As of December 28, 2019 , 42 persons were employed at the corporate office.

As of January 2, 2021, 41 persons were employed at the corporate office.

Employee Advancement

The company believes offering opportunities for career development within the company is integral to building and retaining an outstanding workforce.

The company is dedicated to the professional development of all employees.

Through a commitment to a diverse and engaging culture, the company is able to build a platform that promotes equal opportunities for advancement for everyone.

Employee Safety

The company is dedicated to providing a safe and healthy workplace by operating in accordance with established health and safety protocols.

In response to the COVID-19 pandemic, the company implemented procedures at its manufacturing locations and offices, including enhanced workplace sanitation, travel minimization, social distancing, staggered shifts and established work-at-home protocols for non-production employees.

Fostering a culture that supports diversity among employees as well as professional growth and advancement is an integral part of the company’s identity.

The company has a commitment to build its workforce from diverse backgrounds, experiences and talents among race, religion, language, nationality, disability, age and gender.

Through our diverse workforce the company is able to attract the best talent, which allows better alignment with customers and creative and efficient development of new products for the marketplace.

As a global corporation, the company embraces and celebrates differences and endeavors to cultivate an environment where diversity and inclusion are core values of the organization.

A Focus on Ethics

The company is dedicated to promoting integrity, honesty, and professionalism in all of the business activities within the company.

The company strongly believes that business success is a direct correlation of its reputation for fairness and integrity.

Accordingly, it is essential that the company’s board members and employees practice the highest standards of conduct and professionalism in any interactions with stakeholders including customers, creditors, stockholders, suppliers and other employees.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business