Nortek Agrees to Acquisition
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PROVIDENCE, R.I. (AP) _ Building products maker Nortek Inc. has agreed to be acquired for about $506 million in cash by a group that includes its chief executive and an affiliate of New York-based investment firm Kelso & Co.
The deal announced Friday is subject to shareholder approval but is expected to be completed by October.
Nortek agreed to be acquired by the affiliate of Kelso, a private equity firm, for $46 per share in cash. Nortek has about 11 million shares of common stock outstanding. The buyers would also assume about $1.1 billion in debt.
The offered price is a 9.4 percent premium over Nortek’s closing price on Thursday. Nortek shares gained 7.1 percent, or $3.00 a share, to close Friday at $45.06 on the New York Stock Exchange.
The buyers include Nortek chairman and CEO Richard L. Bready and other members of the company’s management team.
The deal was approved by Nortek’s board, based on the recommendation of a special independent committee appointed to review the proposal.
Providence-based Nortek makes building products for residential and commercial construction, do-it-yourself, remodeling and renovation markets.
Products include kitchen range hoods, bath cabinets, windows, and doors. Nortek also makes heating and air conditioning systems for commercial and residential use, selling its residential products under such brands as Frigidaire and Tappan.
Nortek will continue to operate under its current name.
Nortek had 9,900 employees at the end of 2001. Ed Cooney, vice president and treasurer, said Friday the company does not anticipate that the deal would affect the number of employees.
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