Burnham Holdings, Inc. Announces Subsidiary Divestiture Plan

Rhea-AI Summary

Burnham Holdings (BURCA) has announced plans to divest its Thermo Pride and Norwood Manufacturing subsidiaries to R.W. Beckett Corporation for $27.6 million in cash. The strategic divestiture, along with the previously announced wind down of Crown Boiler operations in Philadelphia, allows Burnham to focus on its core commercial and industrial boiler service business.

The company will concentrate on strengthening its position in providing comprehensive boiler solutions across residential, commercial, and industrial sectors, with emphasis on expanding its mobile boiler room offerings through Thermal InMotion. The transaction was managed by Janney Montgomery Scott's investment banking group and attracted multiple competitive bids.

The acquired businesses will enable R.W. Beckett to expand its liquid fuels industry offerings, while Burnham Holdings continues to focus on its hydronic solutions portfolio, including cast-iron residential boiler products and high-efficiency condensing boilers.

Positive

• Strategic divestiture generates $27.6 million in cash proceeds
• Allows company to focus resources on core boiler business and service operations
• Enables expansion of profitable mobile boiler room offerings through Thermal InMotion
• Transaction attracted multiple competitive bids, indicating strong market interest

Negative

• Loss of revenue streams from Thermo Pride and Norwood Manufacturing subsidiaries
• Reduction in business diversification with exit from certain market segments
• Ongoing wind down costs associated with Crown Boiler manufacturing operations

Strategic move allows company to focus on core operations and drive growth in its commercial and industrial boiler service business

LANCASTER, Pa., May 5, 2025 /PRNewswire/ -- Burnham Holdings, Inc. (BHI), parent company to leading manufacturers of boilers and related HVAC products and accessories, today announced its decision to divest substantially all of the assets of its Thermo Pride (TP) and Norwood Manufacturing (NMI) business subsidiaries. This strategic move aligns with the holding company's long-term vision to strengthen its core boiler business while expanding its commercial and industrial rental and service operations.

The TP and NMI businesses are being acquired by the R.W. Beckett Corporation (RWB) of North Ridgeville, OH, in exchange for all-cash consideration of $27.6 million, subject to customary adjustments. These acquisitions will enable RWB to expand their offerings for the liquid fuels industry.

The divestiture allows BHI to focus its resources and efforts on enhancing its position as a leading provider of comprehensive boiler solutions for the residential, commercial and industrial sectors where they offer an industry leading portfolio of high-quality hydronic solutions, including cast-iron residential boiler products, hydronic heating accessories and advanced high efficiency condensing boilers. BHI will continue to concentrate on its boiler subsidiaries, leveraging their strong management teams to drive synergies, improve efficiencies, and support continued growth.

"Burnham Holdings is committed to meeting the ever-evolving needs of our key boiler markets. This decision allows us to further focus on and strengthen our offerings in the commercial industrial boiler service and support segment of our marketplace," said Chris Drew, President and CEO of Burnham Holdings, Inc. "We are committed to providing our customers with technically advanced, reliable, high-quality boiler solutions, and this strategic divestiture will enable us to better serve their critical operational requirements."

"We are honored to welcome the talented teams from Thermo Pride and Norwood Manufacturing into the Beckett family," said Kevin Beckett, CEO of R.W. Beckett. "These teams have built a legacy of craftsmanship, innovation, and integrity that has earned deep respect across the industry. We're excited to carry that legacy forward – enhancing our offerings and continuing to serve our customers with the same dedication and excellence these teams have long exemplified."

The divestiture of TP and NMI along with the previously announced wind down of manufacturing operations at Crown Boiler in Philadelphia are part of BHI's commitment to remain focused on their boiler operations with a specific longer term focus on growing and developing their commercial and industrial boiler service and installation business, including expansion of their mobile boiler room offerings. This represents a natural progression, building on the proven success of Thermal InMotion, enabling BHI to better meet the needs of its national base of commercial and industrial clients. The divestiture process, expertly managed by Janney Montgomery Scott's investment banking group, was highly competitive, attracting multiple bids. The selected bid was chosen for its strong alignment with their strategic objectives and its ability to deliver significant value.

About Burnham Holdings, Inc.

BHI is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers, furnaces and related HVAC products and accessories for residential, commercial, and industrial applications. BHI is listed on the OTC Exchange under the ticker symbol "BURCA." For more information, please visit www.burnhamholdings.com. 

Safe Harbor Statement

This Press Release contains forward-looking statements. Other reports, letters, press releases and investor presentations distributed or made available by the Company may also contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates, and projections, and you should therefore not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, variations in weather, changes in the regulatory environment, litigation, customer preferences, general economic conditions, technology, product performance, raw material costs, and increased competition.

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SOURCE Burnham Holdings, Inc.

FAQ

What is the value of Burnham Holdings' (BURCA) divestiture deal with R.W. Beckett?

Burnham Holdings is selling Thermo Pride and Norwood Manufacturing to R.W. Beckett Corporation for $27.6 million in cash, subject to customary adjustments.

Which subsidiaries is Burnham Holdings (BURCA) divesting in 2025?

Burnham Holdings is divesting Thermo Pride (TP) and Norwood Manufacturing (NMI) business subsidiaries.

Why is Burnham Holdings (BURCA) selling its subsidiaries?

The divestiture allows Burnham Holdings to focus on its core commercial and industrial boiler service business, strengthen its position in comprehensive boiler solutions, and expand mobile boiler room offerings.

What will Burnham Holdings (BURCA) focus on after the divestiture?

The company will focus on its core boiler operations, particularly growing its commercial and industrial boiler service and installation business, including expansion of mobile boiler room offerings through Thermal InMotion.

Who managed the divestiture process for Burnham Holdings (BURCA)?

Janney Montgomery Scott's investment banking group managed the divestiture process, which attracted multiple competitive bids.