HVAC Breaking News / News

Sept. 25, 2012: Lennox Announces Plans to Divest Service Experts

DALLAS — Lennox International Inc. has announced plans to divest its Service Experts business, which consists of dealer-contractors providing heating and cooling equipment installation and service primarily to the residential market. Lennox said it will retain the commercial service business called Lennox National Account Services (NAS) that was reported within its Service Experts business segment.

Revenue for the Service Experts business segment was $529 million in 2011, $80 million of which was from the NAS business. The company expects to report the non-NAS Service Experts business in discontinued operations beginning with the third quarter of 2012. NAS will be reported under the company’s Commercial Heating & Cooling business segment. The company will provide current and historical financial results adjusted for discontinued operations and the move of NAS to the Commercial segment at the time of the third quarter 2012 earnings release on Oct. 22, 2012.

Lennox International reiterated its 2012 guidance range of $2.35-$2.65 for adjusted earnings per share (EPS), and $2.30-$2.60 for generally accepted accounting principles (GAAP) EPS, both from continuing operations as previously defined at the time of the second quarter 2012 earnings announcement and before the effect of the move of Service Experts to discontinued operations. GAAP net income, which includes discontinued operations, will be impacted through the divestiture process.

“Lennox International is affiliated with thousands of independent dealer-contractors serving the residential market across North America with our Lennox and Allied brands of equipment,” said Todd Bluedorn, chairman and CEO. “Service Experts consists of 108 dealer-contractor branches, and strategically, it is not necessary for these to be owned by the company. With the recovery in the North American residential market this year and the interest from potential acquirers, we are planning to sell this business as well as establish a supply agreement for our equipment with the future owner of Service Experts.”

For more information, visit www.lennoxinternational.com.

Publication date: 9/24/2012

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