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
Doughnut companies Krispy Kreme Doughnut Corp. and Dunkin Donuts are offering free doughnuts to commemorate the upcoming National Doughnut Day on Friday, June 5. In a statement, Krispy Kreme said it is extending National Doughnut Day to National Doughnut Week, with 5 free doughnut days to choose from. The consumers will get any doughnut of choice for free, no purchase necessary, from June 1. Primark US Corp., affiliated to British retailer Primark Stores Ltd., is recalling Kitten Heel Court shoes citing high levels of Chromium, the U.S. Consumer Product Safety Commission said in a statement. The recall involves about 1,700 units of Primark Wide Fit Kitten Heel Court Pumps with around 1.5 inch heel. The shoes were sold in black and nude microfiber fabric. Marriott International reopened all its hotels in China while it sees a recovery in demand in the United States, Chief Executive Officer Arne Sorenson said. The company had closed majority of its hotels in China and across the world following the spread of coronavirus and related lockdowns. The hotel chain, with around 350 outlets across China, said its occupancy rate in the country is now at 40%
RELATED NEWS
Follow RTT