HVAC Breaking News

Feb. 13, 2006: Lennox' Allied Air Enterprises to Consolidate Operations

DALLAS - Allied Air Enterprises, a division of Lennox International Inc. (LII), announced that it will consolidate company manufacturing, distribution, research & development, and administrative operations in South Carolina, and close its current operations in Bellevue, Ohio, in a phased process expected to be completed by the end of the first quarter 2007.

According to the company, the consolidation is expected to incur charges of approximately $20 million pre-tax, or approximately $13 million after-tax, and will lead to estimated annual savings of approximately $12 million pre-tax beginning in 2007. Allied manufactures and markets the Armstrong Air, Ducane, AirEase, Magic-Pak®, and Concord brands of air conditioning and heating equipment, sold primarily through wholesale distribution to HVAC, plumbing, and other dealers and contractors.

"Consolidating our Allied operations in South Carolina will improve our operating efficiency, eliminate redundant fixed costs, and provide our customers with improved service," said Bob McDonough, president and COO, LII Heating & Cooling. "We must achieve these competitive advantages to help ensure the growth of the Allied brands and LII Heating & Cooling."

Publication date: 02/13/2006

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