UK firm to acquire Nortek
UK: British-based investor Melrose Industries PLC has entered into an agreement to acquire US HVAC group Nortek in a £2.15bn deal.
Nortek is heavily involved in the domestic and commercial HVAC sector, owning such well-known brands as Ambirad, Frigidaire, Kelvinator, Maytag and Reznor and the UK’s Eaton Williams, Edenaire, Moducel, Colman, Vapac and Qualitair.
In October, Nortek confirmed the rejection of an “unsolicited proposal” from an unnamed bidder, thought to have been Carrier air-conditioning’s owner UTC.
Commenting on the deal, Melrose’s chief executive, Simon Peckham, said: “Nortek is a high quality manufacturing business with over 90% of its turnover in North America and product penetration into 80% of US households. It serves attractive end markets at good points in their cycle, with strong brands and market positions. Nonetheless there remains solid potential for further improvement under Melrose’s guidance.”
The principal business operated by Melrose’s trading subsidiaries is Brush Turbogenerators, the world’s largest independent manufacturer of electricity-generating equipment for the power generation, industrial, oil & gas and offshore sectors.