PROVIDENCE, R.I. — Nortek Inc., a global diversified manufacturer of heating and cooling products, ventilation products, and more, announced that it has signed a definitive agreement to acquire the HVAC business of Thomas & Betts Corp., a wholly owned subsidiary of ABB.

Nortek’s HVAC brands include Nordyne, Broan-NuTone, Venmar, Governair, Huntair, Mammoth, and more.

Under the terms of the agreement, Nortek will pay approximately $260 million for Thomas & Betts’ HVAC business in an all-cash transaction. Thomas & Betts’ HVAC includes Reznor Manufacturing Co. LLC (United States), AmbiRad Ltd (United Kingdom), Reznor Europe N.V. (Belgium), Gaz Industrie S.A.S. (France), and manufacturing operations in Monterrey, Mexico.

Thomas & Betts’ HVAC designs, manufactures, and sells unit heaters, radiant heaters, and rooftop HVAC units for industrial and commercial applications primarily in North America and Europe. Principal end-use applications include warehouses, factories, restaurants, retail locations and institutions, and others.

Net sales of Thomas & Betts’ HVAC were approximately $160 million in 2013. The transaction is expected to close during the second quarter of 2014, subject to customary closing conditions.

“Acquiring this business will enable us to extend our air management business into attractive adjacent segments of the HVAC market in the United States and Europe,” said Michael J. Clarke, Nortek president and chief executive officer. “This business will help link three of our five major segments in the air management category, which include our Residential Ventilation (RESV), Residential Heating and Cooling (RHC), and Custom and Engineered Solutions (CES) segments. In the U.S., we will be adding the well-respected Reznor brand and related products to those of Nordyne’s residential and light commercial brands along with our other well-known brands, such as Broan, Mammoth, and Huntair. In Europe, we will be complementing our Eaton-Williams business with the businesses of AmbiRad and Gaz Industrie.”

Nortek intends to finance the purchase price of approximately $260 million, to repay approximately $93 million of outstanding indebtedness under the existing senior secured term loan, and to pay related fees and expenses with proceeds of an approximately $350 million senior secured term loan and cash on hand.

For more information, visit www.nortekinc.com.

Publication date: 3/24/2014

Want more HVAC industry news and information? Join The NEWS on Facebook, Twitter, and LinkedIn today!