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Allied Air Consolidates

March 6, 2006
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DALLAS - Allied Air Enterprises (Allied), a division of Lennox International Inc. (LII), is consolidating its manufacturing, distribution, research and development, and administrative operations in South Carolina, and closing its current operations in Bellevue, Ohio, in a phased process expected to be completed by the end of the first quarter 2007.

"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."

The consolidation is expected to incur charges of 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 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.

Publication date: 03/06/2006

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