Nortek, Inc. Enters Into Definitive Merger Agreement With Melrose Industries PLC
- Nortek signed an agreement to merge with Melrose Industries PLC
- The all-cash deal is worth an estimated $2.8 billion, $86 per share
- Nortek will become a wholly-owned subsidiary of Melrose
Nortek, Inc. (NASDAQ: NTK) ("Nortek" or the "Company"), a global diversified industrial company with leading brands and innovative air management and technology-driven solutions for residential and commercial applications, today announced that it has signed an agreement and plan of merger (the "Merger Agreement") with Melrose Industries PLC ("Melrose"), a UK listed public company and Nevada Corp., a newly created wholly owned subsidiary of Melrose, to be acquired by Melrose for $86.00 per share in cash (the "Purchase Price") -- an estimated total enterprise value of approximately $2.8 billion. The Purchase Price represents a premium of approximately 38% to Nortek's closing price on July 5, 2016, and a premium of approximately 80.4% to the volume weighted average price over the prior six-month period.
Pursuant to the terms of the Merger Agreement, Nevada Corp. will conduct an all-cash tender offer for 100% of Nortek's common stock (the "Offer") and, subject to the successful completion of the Offer, Nevada Corp. will merge with and into Nortek (the "Merger" and together with the Offer, the "Transactions") resulting in Nortek becoming a wholly owned subsidiary of Melrose. The Merger Agreement was unanimously approved by Nortek's and Melrose's Boards of Directors.