2GIG Maker Nortek Acquired For $US2.8 Billion
MAKER of 2GIG security and home automation solutions Nortek has announced it will be acquired by Melrose Industries and Nevada Corp for approximately $US2.8 billion at $86 per share in cash. The agreement was unanimously approved by Nortek’s and Melrose’s boards of directors.
“We are very pleased to have reached the proposed agreement with Melrose Industries, which represents a significant premium for our shareholders,” said Nortek’s president and CEO, Michael J. Clarke. “We believe this partnership with Melrose will enhance Nortek’s ability to further leverage its industry-leading brands and market positions to continue driving profitable growth. We believe this transaction will be a positive for our employees and customers alike.
“We have watched and admired Nortek’s progress and we are convinced we can steer this fine business to achieve its full potential,” said Melrose’s Chairman Christopher Miller. “We see a company full of hard-working, dedicated people who are really good at what they do. We can harness those strengths by meaningful long term investment and a vision based on our own experience in similar and relevant markets down the years. Melrose has been a highly successful custodian and builder of U.S. businesses and we are confident that we can bring that expertise to build Nortek for the long term.”
Nortek’s Security and Control Division includes the 2GIG, ELAN and NuTone brands and its solutions are installed in 18 million U.S. homes. Publically-listed Melrose is no smash and grab merchant but has a long history of serious investment in its acquisitions leading to mean increases in profitability of around 10 per cent. ♦