Nortek Acquires Residential HVAC Equipment Distribution Business

PROVIDENCE, R.I., Oct. 8, 2014 /PRNewswire/ -- Nortek, Inc. (Nasdaq: NTK), 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."

"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.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to Nortek's acquisition of the residential heating, ventilation and air conditioning ("HVAC") business of Phoenix Wholesale, Inc. Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "intend," "may," "plan," "potential," "project," "should," "will," or "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on Nortek's current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors impacting such forward-looking statements include the availability and cost of certain raw materials (including, among others, steel, copper, packaging materials, plastics, resins, glass, wood and aluminum) and purchased components, freight costs, the level of domestic and foreign construction and remodeling activity affecting residential and commercial markets, interest rates, employment levels, inflation, foreign currency fluctuations, consumer spending levels, exposure to foreign economies, the rate of sales growth, prices, and product and warranty liability claims. Nortek undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the reports and filings of Nortek with the Securities and Exchange Commission including the description of "risk factors" set forth under 1A in our annual report on Form 10-K, as updated on subsequent quarterly reports on Form 10-Q.

Contact:
Michael Botelho
Vice President, Strategy and Investor Relations
Nortek, Inc.
401.751.1600
[email protected]

SOURCE Nortek, Inc.