Nortek, Inc. NTK, a global diversified company with leading brands and innovative air management and technology-driven products and solutions for residential and commercial applications, announced on April 30 it had completed its acquistion of the ventilation and air conditioning business of Thomas & Betts Corporation, which is a wholly owned subsidiary of ABB Ltd., a global power and automation company.
Thomas & Betts' HVAC business ("T&B HVAC") designs, manufactures and sells unit heaters, radiant heaters and rooftop heating, ventilation and cooling products for industrial and commercial applications primarily in North America and Europe. T&B HVAC includes Reznor LLC (U.S.), AmbiRad Ltd (U.K.), Reznor Europe, N.V. (Belgium), Reznor Ltd. (U.K.), Gaz Industrie S.A.S. (France) and manufacturing operations in Monterrey, Mexico. Principal end-use applications for T&B HVAC products include warehouses, factories, restaurants, retail locations and institutions and other applications.
The Initial Announcement of the Deal
Some Air Distribution Products
Michael J. Clarke to Lead Nortek
Nortek acquired T&B HVAC for approximately $260 million on a cash and debt-free basis. The company financed the purchase, repaid approximately $93 million of outstanding indebtedness under its existing senior secured term loan, and paid related fees and expenses with proceeds of an approximately $350 million senior secured term loan and cash on hand.
"Acquiring T&B HVAC helps us link our three major segments in the air management category, which include Residential Ventilation (RESV), Residential Heating and Cooling (RHC) and Custom and Engineered Solutions (CES)," said Nortek President and Chief Executive Officer Michael J. Clarke.
"In addition, acquiring this business will open the door to cross-selling opportunities, as well as cost synergies, particularly in the areas of supply chain, manufacturing and logistics. In addition, it will enable us to extend our air management business into attractive adjacent segments of the HVAC market in the U.S. and Europe," Clarke said.