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Purchase Includes Peachtree Doors and Windows, a Well-Known National Supplier of Premium Window and Door Products
PROVIDENCE, RI, April 5, 1999—Nortek, Inc. (NYSE:NTK), moving to aggressively expand its North American presence in the windows and doors marketplace, today announced it has agreed to acquire three businesses from Caradon plc of the United Kingdom: Peachtree Doors and Windows, Thermal-Gard and Caradon Windows and Doors Canada. Terms of the transaction were not disclosed.
Peachtree Doors and Windows, based in Norcross, Georgia, is a national supplier of premium residential windows, entry doors and patio doors that targets custom and high-end home markets. A Punxsutawney, Pennsylvania based company, Thermal-Gard manufacturers premium replacement windows, patio doors and sunrooms, primarily for the eastern and mid-western residential markets. Caradon Windows and Doors Canada, headquartered in Calgary, Alberta, is a leading provider of complete window and door systems for new homes in Western Canada. For 1998, this group had combined net sales of approximately $169 million.
Richard L. Bready, Nortek Chairman and Chief Executive Officer, said, “This acquisition is important for a number of strategic reasons. First, Peachtree adds a strong consumer brand name to our window business. In addition, it manufactures and sells entry doors . . . a product line, which we previously have not offered and which will allow Nortek to offer a more complete package to builders.
“The Thermal-Gard product line enhances our market leadership position in the lucrative—and growing—vinyl replacement window market. In addition, Thermal-Gard manufactures and sells sunrooms, a product line which complements Nortek's vinyl replacement window businesses.
And finally, Caradon Windows and Doors Canada gives Nortek a solid entrance into the Western Canadian new-construction market which is currently very strong. This will be our first window manufacturing facility in the western part of North America and should help expand sales in that region,” added Mr. Bready.
Nortek's Windows, Doors and Siding Group already includes some of the country’s leading manufacturers of quality windows, patio doors, vinyl siding and vinyl-siding accessories. The business units in this group have built a reputation for offering high-value, low-maintenance building products for residential and light commercial applications in both the new construction and the repair/remodeling markets.
The acquisition is subject to the Hart Scott Rodino filing requirements of the U.S. Federal Trade Commission.
Nortek is a leading international manufacturer and distributor of high-quality, competitively priced building, remodeling and indoor environmental control products for the residential and commercial markets. The Company offers a broad array of products for improving the environments where people live and work. Its products include range hoods and other spot ventilation products, heating and air conditioning systems, wood and vinyl windows and doors, vinyl siding products, indoor air quality systems, and specialty electronic products.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “plans,” “estimates,” or similar expressions are intended to identify these forward-looking statements. These statements are based on the Company’s current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include the availability and cost of certain raw materials (including among others steel, copper, packaging materials, plastic, resins, glass, wood and aluminum) and purchased components, the level of domestic and foreign construction and remodeling activity affecting residential and commercial markets, interest rates, employment, inflation, Y2K readiness, currency translation, consumer spending levels, operating in international economies, the rate of sales growth, price and product liability claims. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company’s reports and filings with the Securities and Exchange Commission.
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