LIBERTY CORNER, N.J. - Fedders Corp. announced that it has signed a contract with ACE Klimatechnik GmbH of Frankfurt, Germany, for ACE to acquire from Fedders 100 percent of the shares of Polenz GmbH, a distributor of HVAC products in Germany.
ACE is a subsidiary of Electra Consumer Products Ltd., an Israeli public company whose shares are traded on the Tel Aviv Stock Exchange, and which is part of the Elco Group of Companies. The purchase price is 5.5 million Euros in cash. It is anticipated that Polenz'' 2006 revenue will be 17 million Euros. The companies expect the sale to be completed in 2006.
Commenting on the sale, Michael Giordano, Fedders CEO, said, "The divestiture is in keeping with Fedders'' plan to focus on its core markets in North America and Asia."