DALLAS, TX — Lennox International Inc. announced that it has entered into a memorandum of agreement for the formation of a joint venture with Outokumpu Oyj of Finland. Outokumpu will purchase a 55% interest in Lennox’s heat transfer business for $55 million, with Lennox retaining 45% ownership. After a period of three years, Outokumpu will have the option to purchase the remainder of the business contingent upon several factors, including operating performance of the venture.
The agreement, which has been approved by the board of directors of both companies, is expected to be completed by mid-year 2002, depending on regulatory approvals. As part of the agreement, a separate 50-50 technology partnership will also be established.