BY Fraser Tennant
In a $3.6bn deal it claims highlights “the importance of indoor air quality”, Madison Industries, one of the world’s largest privately held companies, is to acquire heating, ventilation and air conditioning manufacturer Nortek Air Solutions from engineering group Melrose Industries.
The acquisition of Nortek brands, including Broan, NuTone, Reznor, StatePoint, Zephyr and Huntair, positions Chicago-based Madison to better serve its customers by providing a full suite of air hygiene solutions to improve indoor air quality for the health and longevity of building occupants.
The Ergotron and Nortek Control businesses, which also form part of the Nortek group, remain under Melrose’s ownership.
“The global pandemic has put a spotlight on the importance of indoor air quality,” said Larry Gies, founder of Madison. “Nortek perfectly complements our portfolio of companies that provide solutions to improve the quality of indoor air. Our mission is to make the world safer, healthier and more productive and the addition of Nortek Air with its 6000 passionate employees allows us to deliver even more of that mission.”
Acquired in 2016 for $2.8bn, Nortek is Melrose’s third largest division by revenue. The British firm initially explored the potential sale of its temperature control business in March 2020, a process delayed by coronavirus (COVID-19) lockdown restrictions.
“Our strategy of ‘buy, improve, sell’ remains the same but circumstances evolve,” said Simon Peckham, chief executive of Melrose. “Our businesses are all responding to the demands of climate change, driven by customers and consumers. Our air management executive team has created a business from scratch with exemplary environmental credentials which will make a real difference to energy and water consumption in its market. We can now hand that technology to a high quality buyer with specialist aspirations and skills.”
The acquisition is expected to be completed in the second or third quarter of 2021 and is conditional upon, among other things, shareholder approval.
Mr Gies concluded: “The Madison team is committed to improving indoor air quality and delivering solutions that provide healthy air for its customers.”
News: UK's Melrose to sell Nortek Air Management unit for about $3.63 bln