Fedders Corp., Liberty Corner, NJ, has purchased 80% of the stock of Islandaire, Inc. from its founder and sole shareholder, Robert E. Hansen, Jr., for a combination of cash and preferred stock.
Islandaire, Ronkonkoma, NY will become known as Fedders Islandaire Company. It manufactures and markets a line of specialized through-the-wall packaged terminal air conditioners (PTACs) and heat pumps, primarily for replacement applications in apartment buildings, hotels and motels, and in institutional buildings such as schools, offices, hospitals and nursing homes.
Islandaire will be managed as an individual business unit, with Hansen remaining as president. Fedders intends to purchase the remaining 20% of Islandaire stock within three years. Islandaire sales in 2004 were approximately $26 million.
Commenting on the acquisition, Fedders Chairman and CEO Sal Giordano, Jr. said, “This acquisition enables Fedders to further expand into the commercial HVAC sector.With the addition of Islandaire, the commercial and industrial air treatment businesses of Fedders will be approximately one third of total sales.”
For more information, visit www.fedders.com.