Nortek buys HVAC market business from ABB
Nortek Inc. has completed its purchase of Thomas & Betts’ HVAC business, a maker of unit heaters, radiant heaters and rooftop-mounted products.
Thomas & Betts Corp. is a wholly owned subsidiary of ABB Ltd. The company’s operations include Reznor in the U.S., United Kingdom and the rest of Europe, AbriRad Ltd. and Gaz Industrie SAS in France.
Nortek purchased the HVAC operations in a $260 million cash deal.
“Acquiring T&B HVAC helps us link our three major segments in the air-management category, which include residential ventilation, residential heating and cooling, and custom and engineered solutions,” 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 United States and Europe.”
Nortek said it financed the purchase, repaid $93 million in outstanding debt from a secured loan, and paid related fees with proceeds from a $350 million secured loan and cash on hand.
The deal also includes manufacturing facilities in Monterrey, Mexico.