Planned Sale of Heatcraft ANZ Refrigeration Business
Lennox International Announces Planned Sale of Refrigeration Businesses in Australia, Asia and South America
The Lennox International Inc. Media Release is copied below and can be viewed here;
DALLAS, March 14, 2018 /PRNewswire/ -- Lennox International Inc. (NYSE: LII) today 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. Beginning with the first quarter of 2018, these businesses will be designated as non-core and excluded from the company's core adjusted revenue and earnings reported each quarter. Adjusted revenue and earnings in the corresponding prior-year period also will be updated for this move.
Off the lower 2017 base from these divestitures, Lennox International reiterates 3-7% revenue growth guidance for 2018 and EPS 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.
"Divesting the Australia, Asia, and South America refrigeration businesses will enable us to focus even more on North America and Europe, where we have significant opportunities and strong market positions," said Lennox International Chairman and CEO Todd Bluedorn. "Our strong refrigeration brands, innovation, and leadership in equipment and advanced controls, position us well to drive growth and margin expansion in our Refrigeration business as we look ahead."
Additional information on Lennox International – including 2017 revenue and profit by quarter for the Refrigeration businesses being divested – is available at www.lennoxinternational.com. Lennox International Inc. is a global leader in the heating, air conditioning, and refrigeration markets. Lennox International stock is listed on the New York Stock Exchange and traded under the symbol "LII". Contact: Steve Harrison, Vice President, Investor Relations, 972-497-6670.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Lennox International's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Examples of forward-looking statements include the expected net proceeds from these planned dispositions and the anticipated timing of the transactions. Important risk factors relating to these dispositions include (a) the risk that the closing conditions (including regulatory approvals) for the sale of the Australia and Asia businesses are not satisfied or delayed, and (b) the ability to enter into definitive agreements and close transactions to sell the South America business and the real property in the Sydney area. For a discussion of other risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year.
Heatcraft to showcase at ARBS
Heatcraft Australia is your HVAC&R Business Partner. Our business offers the broadest and most complete range of Refrigeration & HVAC Equipment, Refrigerant and Parts and our customers are supported technically and logistically by a nationwide wholesale network that continues to grow.
At ARBS 2018, Heatcraft will showcase new releases across all categories including the new Kirby Multiwave Outdoor Multi-Compressor Condensing Unit, which offers the cold storage segment an entry level CO2 refrigeration solution that can deliver a 30% saving across the refrigeration plant costs.
You’re invited to view new innovations from the Lennox HVAC portfolio and discuss the opportunity to grow your business by being part of the Lennox Premier Dealer network.
For more information visit us at Stand 3152.
MAX Hi-Flow is the best tank pump in its class
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In the box:
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To order your ASPEN Max Hi-Flow Condensate Pump click through to smart access or contact
your nearest Heatcraft branch on 13 23 50. Ask us about our Special December offer!
Heatcraft List Price Notifications
Please be advised that we will now be updating you on future price increases via the Heatcraft website www.heatcraft.com.au in AU and www.heatcraft.co.nz in NZ. The next price change will take effect from the 1st of January 2018.
Access to your ‘Net’ pricing and our ‘List’ pricing is available via the Heatcraft smart@ccess Online Customer Portal. You can gain access to this portal by consulting your Account Manager, local Branch or by registering your interest at www.heatcraft.com.au.
We thank you for your continued support and assure you that Heatcraft appreciates your business and we are committed to continually making improvements that add value to your business.
Director of Sales - Australia and New Zealand
R448A Delivers Better Refrigeration Performance and Lower Energy Consumption
Having already secured the distribution of R448A to the AU and NZ market, Heatcraft Australia is now looking to specify the new refrigerant as an application option across its Kirby condensing unit and refrigeration equipment range.
The new refrigerant is already kicking goals, with WA contractor Goff’s Refrigeration working with Heatcraft Australia to design, install and commission R448A refrigeration systems for the prestigious new Perth Stadium project. The low-temperature applications including special -40oC blast freezers are serviced by custom designed &
built water-cooled basic condensing units, air-cooled condensing units, and Kirby 9000 Series Evaporators - all operating on R448A.
It’s little wonder the relatively new to market HFO blend is gaining traction, given the impressive energy efficiency and energy savings being experienced, when compared to R404A. In low and medium temperature applications, manufacturer Honeywell reports R448A has been achieving gains of up to 7.5% in refrigeration capacity and can achieve power consumption reductions of 3-4% - a significant impact on carbon footprint and running costs for any business owner, large or small.
Heatcraft Australia is currently conducting field trials with one of its major customers in a commercial refrigeration application. The customer has reported preliminary performance results are exceeding expectations, providing further verification of equivalent system performance and suitability. R448A has been designed to be easily retrofitted into existing R404A systems, requiring minimal component changes. No oil change (POE) is required or tube work changes. Minor adjustment of the TX
valve is all that may be required.
R448A is safety classified A1: non-toxic and non-flammable. With around 25% HFO content, the GWP has been lowered to 1387. This represents 2/3 reduction in comparison to R404A and gives R448A the lowest GWP of any A1 retrofit refrigerant for low-temperature applications. The refrigerant has been tested and endorsed by major compressor manufacturers and approved for use with Dorin H Series and Copeland compressors. It is also suitable to be used with leading control brands, including Danfoss, Emerson and Dixell.
For other brands, please consult your Heatcraft representative or respective product manufacturer. Customers interested in a Kirby customised refrigeration solution, suited to R448A should speak to their Heatcraft consultant, who will work with them to provide rated performance data based on their required selection.