Melrose PLC Acquires Nortek Air Management for £2.7 Billion
FTSE 100 Group Expands HVAC Portfolio with Latest Purchase
Deal Adds $1.6 Billion in Revenue, Strengthens Position in North America
Melrose Industries (LON: MRO), the FTSE 100 conglomerate, has acquired Nortek Air Management (NAM) from Nortek, Inc. for £2.7 billion (approximately $3.6 billion). This acquisition marks a significant expansion of Melrose's HVAC (heating, ventilation, and air conditioning)portfolio, adding $1.6 billion in revenue and further strengthening its position in North America.
Nortek Air Management is a leading provider of air quality solutions for commercial and residential applications, with a strong presence in the United States, Canada, and Mexico. The company's products include air handlers, chillers, packaged rooftop units, and air distribution systems.
The acquisition of NAM is a strategic move for Melrose as it seeks to expand its HVAC business, which already includes companies such as Dynesco and Gewerbe. With the addition of NAM, Melrose now has a comprehensive offering of HVAC solutions for a wide range of applications.
The acquisition is expected to be completed in the second half of 2023, subject to regulatory approvals.
Benefits of the Acquisition for Melrose
- Expands HVAC portfolio: NAM's range of products and services complements Melrose's existing HVAC business, providing a more comprehensive offering to customers.
- Strengthens North American presence: NAM has a strong presence in the North American market, which is a key growth area for Melrose.
- Revenue growth: NAM's $1.6 billion in revenue will contribute significantly to Melrose's top-line growth.
Conclusion
The acquisition of NAM is a major boost to Melrose's HVAC business and further strengthens its position as a leading provider of HVAC solutions globally. With its expanded portfolio and increased presence in North America, Melrose is well-positioned to capture growth in the HVAC market in the years to come.