Nortek Holdings Inc. announced that it has a definitive agreement to be bought by Boston-based Thomas H. Lee Partners, in partnership with management, for approximately $1.75 billion. Nortek is owned by members of management – including chairman and CEO Richard L. Bready – and Kelso and Co.
The deal for the maker of building products is expected to close in the third quarter of 2004 and is subject to closing conditions.
“We have enjoyed working with Kelso and have made many strides during our association, including a successful capital restructuring, sale of our Ply Gem Industries Unit, and strong increases in revenues and operating earnings,” said Bready in a statement.
UBS Investment Bank and Credit Suisse First Boston will provide financing for the transaction.
“This is a company with strong brands, strong marketplace positioning and exceptionally strong management,” Anthony J. DiNovi, managing director of Thomas H. Lee Partners, a private equity firm said in the statement. DiNovi added that management will have an ownership stake of about 33 percent in the new company.
