RAC company Lennox International Inc has signed an agreement with The Manitowoc Company, Inc. to acquire the assets of its Kysor/Warren business
The company is a manufacturer of refrigerated systems and display cases for supermarkets throughout North America.
Under the terms of the agreement, the acquisition is $138 million, subject to a post-closing purchase price working capital adjustment. The deal is expected to close in the first quarter of 2011, subject to customary closing conditions and regulatory approval.
Todd Bluedorn, Lennox International chief executive, says: “Refrigeration is a core business for us with solid long-term performance.”
“We are excited about the acquisition of the Kysor/Warren business, which supports our growth strategy in the refrigeration market and extends the value chain for us directly to food retail and supermarket customers.”
“We will drive operational synergies in the combined business and expect the acquisition to be accretive within the first year. We still expect our refrigeration segment margin to be in the 12-14% range for 2012.”