Ergotron to Be Acquired by Nortek for $280M
Providence, Rhode Island-based Nortek, Inc., announced Friday that it has entered a deal to acquire St. Paul-based Ergotron, Inc., for roughly $280 million.
Nortek will assume all of the outstanding shares of Ergotron-a designer and manufacturer of ergonomic mounting and mobility products for computer monitors and other electronic displays-through a cash transaction.
The deal-which is subject to customary closing conditions but has been unanimously approved by both companies' boards of directors-is expected to close by the end of December.
Nortek, which manufactures residential and commercial ventilation and home security products, plans to add Ergotron to its existing home technology products segment. Nortek's products include bath fans, air-quality systems, heating and air conditioning systems, and other home technologies.
“We believe this transaction will provide truly unique opportunities and will create value for both companies' shareholders, customers, and employees,” Joel Hazzard, president and CEO of Ergotron, said in a statement. “This combination will provide the platform for further innovation to service market needs ranging from electronic medical records in health care to the 21st century digital classroom and the office of the future.”
Richard L. Bready, Nortek's chairman and CEO, said in a news release that “Ergotron's management team has demonstrated a track record of growth in net sales and profits during the recent economic downturn,” and the acquisition will provide his company with “an additional platform for growth and profitability.”
Ergotron creates mounts, arms, carts, and other products designed to attach to display devices, and its products are sold to IT distributors, resellers, and clients in the personal computer industry.
The privately held company reported net sales of about $190 million and earnings totaling $28 million for the fiscal year that ended September 30, according to Nortek.