logo
Plus   Neg
Share
Email

Lennox Announces Sale Of Refrigeration Units In Australia, Asia, South America

Lennox International Inc. (LII) announced the planned sale of its Australia, Asia, and South America businesses as the company streamlines its Refrigeration portfolio to focus on its strong market position in North America and Europe.

For the sale of the Australia and Asia businesses, the company has signed a binding agreement with Beijer Ref AB. The transaction is expected to close in the second quarter of 2018.

Separately, Lennox International is in the process of selling real estate in the Sydney area formerly related to its business operations there. For the sale of the South America business, the company is far along in the process and expects that transaction to be concluded in the second quarter of 2018 as well.

In total, the businesses being divested contributed $187 million in revenue and $6.4 million in profit to the company's Refrigeration segment in 2017.

Off the lower 2017 base from these divestitures, Lennox International reiterates 3-7% revenue growth guidance for 2018 and earnings per share from continuing operations of $9.75-$10.35. The company is raising its 2020 margin target for the Refrigeration segment from 12-14% to a new range of 14-16%.

Total net proceeds from the transactions are broadly estimated to be approximately $110 million. With strong cash generation, Lennox International will continue to invest in the organic growth and profitability of its Residential and Commercial HVAC businesses as well as Refrigeration, grow dividends with earnings over time, and repurchase company stock.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The National Retail Federation or NRF said that conflicting economic data amid a resurgence in coronavirus cases has made it difficult to predict how steadily the U.S. economic recovery will continue. NRF Chief Economist Jack Kleinhenz noted that based on quarterly and monthly data, the U.S. economic recovery is continuing despite the elevated COVID-19 cases. Ford Motor Company (F) announced that Jim Hackett plans to retire as President and CEO. He will continue as a special advisor to the company through March of 2021. The company has named Jim Farley as new president and CEO. He will join the board of directors, effective Oct. 1. Farley joined Ford in... Google parent Alphabet Inc. has issued $5.75 billion in sustainability bonds, becoming the largest green or sustainability bonds issued by a company until now. This is part of a $10 billion debt offering. Alphabet said the proceeds will be used to fund projects that are environmentally or socially responsible.
RELATED NEWS
Follow RTT