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Southwest HVAC News
Nortek Acquires
Residential HVAC Equipment Distribution Business.
Nortek, Inc. , a global diversified company with leading brands and
innovative air management and technology-driven products and
solutions for residential and commercial applications, today
announced that it has acquired the HVAC distribution business of
privately owned Phoenix Wholesale, Inc.
Operating out of five facilities in Arizona, including locations in
Flagstaff, Tempe and Tucson, the business will be integrated into
Nortek's Residential Heating and Cooling (RHC) segment. Nortek
expects the transaction, which was funded from existing cash on
hand, to generate incremental revenue in the range of $15 million to
$20 million over the next 12 months.
"Adding Phoenix Wholesale's residential HVAC business advances our
strategy of expanding our RHC segment's distribution footprint in
regions where we currently have minimal market penetration," said
Nortek President and Chief Executive Officer Michael J. Clarke.
"With this acquisition, we now have 12 company-owned distribution
locations. This transaction also brings together Phoenix Wholesale's
outstanding customer support and distribution capabilities with
RHC's industry-leading equipment and brands to create a stronger
presence in the Arizona market."
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"RHC also continues
to strengthen its partnerships with its existing network of
independent distributors," Clarke said. "We have long valued
these partnerships, which will continue to be core to RHC's
overall business. At the same time, to accelerate the segment's
growth, we are working to establish Nortek-owned distribution
centers in areas where there are limited partnership
opportunities or where the market is large enough to support an
additional distribution presence."
About the Residential Heating and Cooling Segment
Nortek's Residential Heating and Cooling segment offers a
variety of energy efficient comfort products for the
residential, manufactured housing and light commercial markets,
including central air conditioners, heat pumps, furnaces and
unit heaters. Many offer some of the longest warranties in the
industry--as well as innovative technologies that improve energy
efficiency and reliability.
About Nortek
Nortek* is a global, diversified company whose many
market-leading brands deliver broad capabilities and a wide
array of innovative, technology-driven products and solutions
for lifestyle improvement at home and at work. The Company's
broad array of offerings includes audio-video and security
solutions, digital display mounting solutions, ventilation
products such as range hoods and bathroom fans, heating and
cooling products, and air management systems.
*As used herein, the term "Nortek" refers to Nortek, Inc.,
together with its subsidiaries, unless the context indicates
otherwise. This term is used for convenience only and is not
intended as a precise description of any of the separate
corporations, each of which manages its own affairs
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