Oct. 22, 2014: Nortek Acquires Residential HVAC Equipment Distribution Business
Transaction Strengthens Presence of Nortek’s Residential Heating and Cooling Segment in Arizona Market
PROVIDENCE, R.I. — Nortek Inc. announced that it has acquired the HVAC distribution business of privately owned Phoenix Wholesale Inc.
Operating out of five facilities in Arizona, including locations in Flagstaff, Tempe, and Tucson, the business will be integrated into Nortek’s Residential Heating and Cooling (RHC) segment. Nortek expects the transaction, which was funded from existing cash on hand, to generate incremental revenue in the range of $15 million to $20 million over the next 12 months.
“Adding Phoenix Wholesale’s residential HVAC business advances our strategy of expanding our RHC segment’s distribution footprint in regions where we currently have minimal market penetration,” said Michael J. Clarke, Nortek president and chief executive officer. “With this acquisition, we now have 12 company-owned distribution locations. This transaction also brings together Phoenix Wholesale’s outstanding customer support and distribution capabilities with RHC’s industry-leading equipment and brands to create a stronger presence in the Arizona market.
“RHC also continues to strengthen its partnerships with its existing network of independent distributors,” Clarke said. “We have long valued these partnerships, which will continue to be core to RHC’s overall business. At the same time, to accelerate the segment’s growth, we are working to establish Nortek-owned distribution centers in areas where there are limited partnership opportunities or where the market is large enough to support an additional distribution presence.”
For more information, visit www.nortek-inc.com.
Publication date: 10/20/2014