Lennox International has boosted the selection of parts it has available for customers to repair and extend the life of their HVAC systems with its acquisition of Duro Dyne, Supco and other HVAC-related manufacturing assets from NSI Industries, an electrical component maker owned by private equity firm Sentinel Capital Partners.
“This acquisition strengthens our ability to deliver complete lifecycle solutions for residential and commercial customers and reinforces our position as a one-stop partner for the HVAC industry,” said Lennox CEO Alok Maskara. “By adding trusted heritage brands including Duro Dyne and Supco into our portfolio, we are responding to the needs of our customers who have asked for a broader parts and supplies offering.”
Huntersville, N.C.-based Duro Dyne makes ductwork and other sheet metal-based components in HVAC systems and Allenwood, N.J.-based Supco makes fans, belts, valves, igniters and thousands of other HVAC parts.
Lennox closed on the acquisition Oct. 16 for $550 million in cash.
“There is an excellent strategic fit between NSI’s HVAC division and Lennox,” John Van Sickle, a Sentinel partner, said in a statement.
“We … look forward to joining the Lennox team in our next chapter of growth,” said NSI’s HVAC president, John MacQuarrie. “We remain focused on operational excellence, product innovation, and delivering exceptional value to our customers.”
High-cost environment
As in other sectors, manufacturers of HVAC components face higher costs in part due to tariffs on copper and other metals and materials, which could affect what Lennox will charge for components produced by its new subsidiaries, although in its announcement the company didn’t address that.
In September, manufacturers raised their HVAC component prices on average close to 10%, according to an ACHR News report.
NDL Industries, which makes copper fittings, refrigeration ball valves and filter driers, among other products, raised its prices 10%. Nidec Corp., which makes motors and pumps, raised its prices 5%. Resideo, which makes sealants and adhesives, raised its prices up to 10%. The report lists more than a dozen manufacturers in the HVAC space with price increases.
“Copper-linked lines and tariff-exposed products were the most frequently cited factors,” the ACHR report said.
“Preserving [Duro Dyne and Supco] brand value during the ownership transition” will be integral to how well the acquisition pays off, a Stock Titan analysis of the deal says.
