Elan, Speakercraft Manufacturer Sold, US Bluestream Distributor
Nortek Controls the owners of Speakercraft, Elan Control Systems and the US distributor of Australian developed networking product Blustream is set to be merged with a large international manufacturer in the Professional Security, Access, and Custom Electronics market in a deal worth around $383M
The British firm Melrose Industries which owns Nortek Controls reached an agreement to divest Nortek Control last week sources with knowledge of the transaction confirmed.
Similar to a private equity firm, Melrose buys industrial companies and seeks to improve the way they are run before selling them.
In 2016, the company purchased Nortek, an underperforming mini conglomerate, for $2.8 billion. In April, the firm sold Nortek Air Management, a sister company to Nortek Control, to Madison Industries for $3.6 billion.
Nortek Control, which rebranded in 2020, announced the release of the 2GIG EDGE Security and Automation Panel with AI and edge analytics in March.
The new panel for the pro-install security market is said to deliver the industry’s first secure face recognition touchless disarm.
Engineered using edge analytics and with technology built into the panel ensures homeowner’s biometric data stays secure by saving it only on the panel.
The buyer of the Nortek Controls business as not been named, and the transaction is subject to normal regulatory and federal approvals with the Company confirming in a statement to dealers that they anticipate the deal closing sometime in October 2021.
Melrose Industries who last week announced trading has been better than expected in 2021 over the prior year after underlying revenues rose 5.6%, the business made a loss of A$149M last year, in 2021 the business made a profit A$203M.
Nortek Management told dealers that during Melrose’s ownership the business grew with the introduction of new technology, innovation and analytics.
“This next chapter promises even more as we merge with a strategic global partner committed to our end-user markets. While facing unprecedented challenges this year, we have closed record sales in recent months, led by 2GIG EDGE, the most award-winning security product in 2021, and other award-winning SKUs including Speakercraft Subwoofers and ELAN Control Systems.
At this stage Melrose Industries has not said what the merger will deliver for the UK based Company.
Shares in the FTSE 100 group jumped nearly 6 per cent to 181.44p after the company, which owns aerospace and car parts group GKN, said its businesses were benefiting from the recovery in the European and US economies.
The London-based company acquired GKN, the car and aircraft parts company, in an $14 Billion hostile takeover in 2018. T
The purchase of GKN gave Melrose significant exposure to two sectors that have been among the worst affected by the downturn triggered by the coronavirus crisis with some insiders claiming that “this is why Nortek Controls is being sold”.
Melrose reported an adjusted operating profit for the six months ended June 30 of £223m compared with a loss of £11m last year.