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Melrose Unloads Nortek Control for Just $285 Million

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Photo of Nortek facility, now part of Melrose

Only Ergotron Remains…for Now…from the Original Acquisition

Melrose PLC, the private equity turnaround expert that purchased the entirety of Nortek back in 2016, unceremoniously let it slip in a bullet point of a report on financial results, that it has found a buyer for the last remaining piece of the Nortek puzzle they have struggled to turn around over the years. Although they did not name the buyer, Melrose says a contract has been signed for a $285 million deal – remarkably low considering all the brands included in this transaction.

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Investors Dub Melrose the Biggest ‘Loser’ After Sale of Nortek Announced

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Photo of Nortek facility

If you read my report on the sale of Nortek Air Management on Monday, you know that Melrose sold off the division in a deal valued at approximately $3.6 billion. But in my discussion of the deal, I expressed some skepticism about the metrics the company was using to tell investors what a great deal it was. I don’t claim to be some kind[1] of a financial expert, but something smelled fishy to me.

Now we know what investors think of that deal…and it isn’t good for Melrose.

See what investors think of the Melrose sale of Nortek Air

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Melrose ‘Disposes’ of Nortek Air Mngmt in Deal Valued at $3.625B

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Melrose Industries PLC announced this morning that they have entered into an agreement to sell off the Nortek Air Management business – the most valuable part of the company – to Madison Industries of Chicago, Il. The cash deal is valued at approximately $3.625 billion. Melrose refers to this transaction as the “Disposal.”

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Melrose Makes It Official: Nortek is For Sale…Again

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Melrose logo

Melrose Industries Plc has announced that their financial results for fiscal 2020 and it wasn’t pretty. The company swung to a net loss on lower revenues. They said this was mostly due to the Coronavirus pandemic’s massive impact on its GKN Aerospace division. To streamline operations and raise cash, Melrose told the press that it has again put Nortek up for sale.

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Sources: Nortek Security & Control Shutting Down Niles and Sunfire Brands

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An image of the website of Niles, a Nortek Security & Control brand

Multiple sources are confirming to Strata-gee that Nortek Security & Control (NSC or Nortek) is planning to shut down two of their brands – Sunfire and the once iconic Niles. The move is said to be the result of their relative under-performance as the company shifts its focus to the apparently more successful brands, such as Elan.

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Melrose Suspends Dividends, Cuts Executive Pay

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Parent of Many Top CI Brands Steps in to Adjust for Impact of COVID-19

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Melrose Industries PLC has announced it will suspend the payment of its usual year-end dividend in the face of the deteriorating economic environment as a result of the global spread of Coronavirus (COVID-19). Melrose, the U.K. turnaround specialist that is parent company of the U.S. based Nortek has taken other actions to adjust operations at its operating companies in the face of COVID-19.

Learn more about Melrose’s actions to adjust to COVID-19…

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Once Again, Melrose Considers Disposing of Nortek; This Time It’s Serious

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Melrose logo

Melrose Industries plc, the British turnaround specialist who acquires underperforming companies to improve their operations and management for resale, is now actively considering selling off the bulk of Nortek in a deal that could be worth $3 billion, according to reports from Bloomberg News and the Financial Times. If they actually execute this sale, it will be a relatively early exit from their ownership of Nortek which they purchased in 2016 for $2.8 billion.

See why Melrose is ready to exit Nortek…

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Nortek Figures Prominently, If Not Always Positively, in Melrose Industries’ 1st Half Fiscal Results

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Melrose logo

Melrose Industries PLC, a U.K. based investment group that purchased Nortek, Inc. back in 2016, released their fiscal 2019 first half financial results last month (for the period ending June 30, 2019). And while the results showed strong sales growth (thanks to a large acquisition) the company still booked a net loss.

Perhaps more interesting, was that Nortek’s Security & Smart Technology unit figured quite prominently in the document – often for the wrong reasons.

See why Nortek was so prominent…

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Ex-Nortek Exec Speaks With Strata-gee, See What’s On His Mind

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Photo of Joe Roberts from 2017 CEDIA Show
Joe Roberts, EVP of Products and Marketing, at 2017 CEDIA Show

The last ninety days or so have been somewhat turbulent at Nortek Security and Control (NSC), with two top executives departing under foggy circumstances. First, in May we learned that President Mike O’Neal had left the company. Then, last week, news emerged that Joe Roberts, Executive VP of Products and Marketing had also departed.

I reached out to Joe Roberts to try to find out what was up with all of these changes at NSC.

See what Roberts had to say about Nortek…

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Ted Green Featured as Guest Panelist on ResiWeek

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Panel Talks About Control4/NEEO Acquisition, Death of Crestron Pyng & Elan Touchpanels

ResiWeek, the podcast from AVNation.tv that is focused on the residential integration industry segment, has once again invited Strata-gee editor Ted Green to participate as a guest panelist on its weekly podcast. This episode #158 featured several top stories pulled from the industry news of the day.

See what topics Ted discussed on ResiWeek…

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