Fedders Corporation, a maker of HVAC products, announced that it has purchased 80 percent of the stock of Islandaire, Inc. from its founder and sole shareholder, Robert E. Hansen, Jr., for a combination of cash and preferred stock.
Islandaire (Ronkonkoma, NY, U.S.), which will become known as Fedders Islandaire Company, manufactures a line of specialized through-the-wall packaged terminal air conditioners (PTACs) and heat pumps, primarily for replacement applications.
Islandaire will be managed as an individual business unit, with Mr. Hansen remaining as president. Fedders said it intends to purchase the remaining 20 percent of Islandaire stock within 3 years. In 2004, Islandaire reported sales were approximately U.S. $26 million.
"This acquisition enables Fedders to further expand into the commercial HVAC sector," Sal Giordano, Jr., Fedders chairman and CEO, said. "With the addition of Islandaire, the commercial and industrial air treatment businesses of Fedders will be approximately one third of total sales."
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