Fedders Acquires 80% of Islandaire, Inc.
March 07 2005 - 6:00AM
PR Newswire (US)
Fedders Acquires 80% of Islandaire, Inc. LIBERTY CORNER, N.J.,
March 7 /PRNewswire-FirstCall/ -- Fedders Corporation, (NYSE:FJC),
a leading global manufacturer of air treatment products, including
air conditioners, air cleaners, dehumidifiers and humidifiers and
thermal technology products, today announced that it has purchased
eighty percent (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. Located in Ronkonkoma, New
York, Islandaire, which will become known as Fedders Islandaire
Company, 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's
replacement PTAC units fit into existing wall openings without
alteration to the structure of the building. Islandaire will be
managed as an individual business unit, with Mr. Hansen remaining
as President. Fedders intends to purchase the remaining twenty
percent (20%) of Islandaire stock within three years. Islandaire
sales in 2004 were approximately $26 million. Commenting on the
acquisition, Fedders Chairman and Chief Executive Officer, 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." Robert
Hansen added, "The Islandaire team is very pleased to become a part
of Fedders. Together, we will broaden each company's product
offering and become an even more formidable industry leader. As an
example, Islandaire will be the platform to launch Fedders' new,
ultra-quiet PTAC into the new construction market, which is
significantly larger than the replacement market. We look forward
to this opportunity and to continued growth as part of Fedders."
This news release includes forward-looking statements that are
covered under the "Safe-Harbor" clause of the Private Securities
Litigation Reform Act of 1995. Such statements are based upon
current expectations and assumptions. Actual results could differ
materially from those currently anticipated as a result of known
and unknown risks and uncertainties including, but not limited to,
weather and economic, political, market and industry conditions and
reliance on key customers. Such factors are described in Fedders'
SEC filings, including its most recently filed annual report on
Form 10-K. The company disclaims any obligation to update any
forward-looking statements to incorporate developments occurring
after release of announcement. Visit the Fedders investor
information website at http://www.fedders.com/ to access additional
information on Fedders. DATASOURCE: Fedders Corporation CONTACT:
Robert Laurent, Jr. of Fedders Corporation, +1-908-604-8686, Web
site: http://www.fedders.com/
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