Dec. 20, 2010: Lennox to Expand Refrigeration Business With Acquisition of Kysor/Warren
December 20, 2010
DALLAS - Lennox International Inc. announced that it has signed a definitive agreement with the Manitowoc Company Inc. to acquire substantially all the assets of its Kysor/Warren business. Kysor/Warren is a leading manufacturer of refrigerated systems and display cases for supermarkets throughout North America.
Under the terms of the agreement, the total consideration for the acquisition is $138 million, subject to a post-closing purchase price working capital adjustment. The deal is expected to close in the first quarter of 2011, subject to customary closing conditions and regulatory approval. Lennox International expects the acquisition to be accretive to GAAP earnings per share by 3 cents in 2011 and by 12 cents in 2012.
“Refrigeration is a core business for us with solid long-term performance,” said Todd Bluedorn, chief executive officer of Lennox International. “We are excited about the acquisition of the Kysor/Warren business, which supports our growth strategy in the refrigeration market and extends the value chain for us directly to food retail and supermarket customers. Our refrigeration subsystems combined with Kysor/Warren’s systems and display cases will enable us to provide complete refrigeration solutions utilizing the most advanced technologies to maximize energy efficiency for our customers. We will drive operational synergies in the combined business and expect the acquisition to be accretive within the first year. We still expect our refrigeration segment margin to be in the 12-14 percent range for 2012.”
Lennox International’s refrigeration segment revenue, 18 percent of total company revenue, was up 11 percent and segment profit was up 44 percent for the first nine months of 2010 over the prior-year period. Refrigeration segment revenue was $513 million for 2009 and is expected to be approximately $560 million for 2010. Kysor/Warren had $145 million in revenue for 2009, and 2010 revenue will exceed $190 million.
For more information, visit www.lennoxinternational.com.
Publication date: 12/20/2010