ABB to sell its Thomas & Betts' HVAC business to Nortek
22 Mar 2014
Swiss engineering group ABB Ltd yesterday agreed to sell its Thomas & Betts' heating, ventilation and air conditioning business (HVAC) to US conglomerate Nortek, for $260 million in cash.
Under the terms of the agreement, Nortek will Thomas & Betts' HVAC Business, which includes Reznor Manufacturing Company, (US), AmbiRad Ltd (UK), Reznor Europe, N.V. (Belgium), Gaz Industrie S.A.S. (France) and manufacturing operations in Monterrey, Mexico.
Zurich-based ABB had in early 2012 acquired US electrical components maker Thomas & Betts for $3.9 billion in cash in order to expand into the North American market for low-voltage products. (See: ABB to acquire US electrical components maker Thomas & Betts for $3.9 bn)
ABB said that it is divesting this business because of limited synergies with ABB's core portfolio. ABB will continue to supply its electrical motors and drives as well as its low voltage products range to the HVAC industry.
Thomas & Betts HVAC had net sales of $160 million in 2013.
''The divestment is in line with our strategy to continuously optimize our portfolio and to focus our efforts on driving profitable growth in our core automation and power businesses,'' said ABB CEO, Ulrich Spiesshofer. ''Overall, Thomas & Betts continues to provide great synergies with significant growth opportunities and our integration process is fully on track.''
''This sale allows us to focus on our electrical business and on the benefits from the synergies with ABB in North America and the rest of the world,'' said, Thomas & Betts CEO, Chuck Treadway.
"Acquiring this business will enable us to extend our air management business into attractive adjacent segments of the HVAC market in the US and Europe," said Nortek president and CEO, Michael Clarke.
In the US, Nortek will add Thomas & Betts' HVAC Reznor brand and related products to those of Nordyne's residential and light commercial brands along with its other well-known brands, such as Broan, Mammoth and Huntair.
In Europe, Nortek will be complementing its Eaton-Williams business with the businesses of AmbiRad and Gaz Industrie.
Rhode Island-based Nortek is a global, diversified company dealing in air management and technology-driven products and solutions for lifestyle improvement at home and at work.
The company's offerings include ventilation products, heating and cooling products, and air management systems, security systems and digital display mounting solutions.