Melrose Industries Plc - Considers Sale of Nortek Air Busin
This content has been sourced from: https://www.bloomberg.com/news/articles/2020-01-21...
Melrose Industries Plc,
The British buyout specialist, is considering selling the bulk of its Nortek
division, people with knowledge of the matter said.
Birmingham-based Melrose is working with advisers to weigh
options for the division’s air businesses, which sell products
including heating, ventilation and cooling systems, according to
the people. It is seeking to raise more than $3 billion from the
sale, the people said, asking not to be identified because the
information is private.
Melrose bought Nortek Inc. in 2016 for $2.8 billion
including debt. The original Nortek businesses’ adjusted
operating profit has risen 40% under Melrose’s ownership, it
said in a September investor presentation.
Nortek Air & Security makes large heating and air-
conditioning systems installed during home construction, as well
as products like range hoods and bathroom ventilation fans. The
unit also sells residential security systems and smart-home
products, a part of the business that’s struggled due to the
impact of tariffs and intense competition.
The company could keep some smaller businesses under the
Nortek Air & Security division, the people said. No final
decisions have been made, and Melrose could decide to keep the
assets for longer, the people said.
A representative for Melrose declined to comment.
A divestment would allow Melrose to focus on turning around
the operations of British aerospace and automotive firm GKN Plc,
which it acquired in a hostile takeover in 2018. Melrose, which
listed on the U.K. stock market in 2003, buys industrial
companies and improves the way they’re run before selling them.