Lennox Signs Agreement to Acquire HVAC Division of NSI Industries

Rhea-AI Summary

Lennox (NYSE: LII) has announced a strategic acquisition of NSI Industries' HVAC division for $550 million from Sentinel Capital Partners. The acquisition includes prominent brands Duro Dyne and Supco, which manufacture critical HVAC components and accessories.

The deal enhances Lennox's ability to provide comprehensive lifecycle solutions and expands its parts and supplies portfolio across North America. The acquisition brings manufacturing and distribution sites throughout the USA and Canada, strengthening Lennox's position as a one-stop HVAC partner.

The transaction is expected to close in Q4 2025, subject to regulatory approvals. NSI Industries HVAC President John MacQuarrie and his team will join Lennox, combining their 70+ years of industry experience with Lennox's 130-year heritage in HVAC innovation.

Positive

• Strategic acquisition valued at $550 million expands product portfolio
• Addition of market-leading brands Duro Dyne and Supco strengthens market position
• Expanded manufacturing and distribution capabilities across USA and Canada
• Integration of 70+ years of industry experience from NSI's HVAC division

Negative

• Significant capital expenditure of $550 million may impact short-term financial flexibility
• Regulatory approvals pending could delay closing
• Integration risks with existing operations

Insights

M&A and Strategy Expert

Lennox's $550M acquisition of NSI's HVAC division strengthens product portfolio and expands market reach through established brands Duro Dyne and Supco.

Lennox's $550 million acquisition of NSI Industries' HVAC division represents a strategic expansion of its parts and supplies portfolio. This transaction brings several valuable assets under Lennox's umbrella, most notably the Duro Dyne and Supco brands, which have established market positions in HVAC components and accessories.

The acquisition addresses a critical market opportunity by responding to customer demand for a more comprehensive parts and supplies offering. By integrating these complementary product lines, Lennox transforms from primarily an equipment manufacturer into a more complete solutions provider covering the entire HVAC lifecycle.

From a strategic perspective, this move delivers three key advantages:

• Broader product ecosystem that increases customer retention and wallet share
• Enhanced distribution capabilities across North America
• Expanded digital capabilities to improve customer experience

The timing aligns with industry consolidation trends, as larger HVAC players seek to control more elements of the value chain. With manufacturing and distribution sites across the US and Canada, this acquisition provides immediate scale rather than requiring organic build-out.

While the $550 million price tag is substantial, the addition of "market-leading" brands with 70+ years of heritage suggests Lennox is acquiring established revenue streams with loyal customer bases. The deal's expected closing in Q4 2025 indicates a standard regulatory approval timeline without anticipated complications.

Strategic acquisition expands parts and supplies portfolio for commercial and residential HVAC customers.

DALLAS, Aug. 18, 2025 /PRNewswire/ -- Lennox (NYSE: LII), a leader in energy-efficient climate control solutions, announced today it has signed a definitive agreement to purchase the HVAC division of NSI Industries from Sentinel Capital Partners for approximately $550 million. This market-leading HVAC platform includes Duro Dyne, Supco, and other leading critical component and accessories brands. The acquisition enhances Lennox's ability to deliver a comprehensive, integrated portfolio of parts and supplies supported by enhanced digital and distribution capabilities across North America that elevate the customer experience.

"This acquisition strengthens our ability to deliver complete lifecycle solutions for residential and commercial customers and reinforces our position as a one-stop partner for the HVAC industry," said Alok Maskara, Chief Executive Officer of Lennox. "By adding trusted heritage brands including Duro Dyne and Supco into our portfolio, we are responding to the needs of our customers who have asked for a broader parts and supplies offering. As a company, Lennox just celebrated 130 years of HVAC innovation, and I look forward to welcoming the new employees from this acquisition as we come together to further transform the North American HVAC industry."

Duro Dyne and Supco offer a robust product portfolio of HVAC parts and supplies that complement Lennox's current residential and commercial HVAC products with distribution and manufacturing sites across the USA and Canada. Duro Dyne is known as a market-leading manufacturer of mission-critical HVAC/R components and accessories. Supco provides high-performing, technician-focused HVAC/R parts.

"My team members and I are excited to join Lennox," stated NSI Industries HVAC President John MacQuarrie. "The resources Lennox brings us will help us ensure our legacy of success, built over 70+ years by our team members and channel partners, continues. We are pleased that our HVAC business has found a home in Lennox, and I believe our cultures of excellence and innovation will produce greater benefits for all."

The acquisition is expected to close in the fourth quarter of 2025, subject to various regulatory approvals. For more details on the acquisition, please visit investor.lennox.com.

About Lennox

Lennox (NYSE: LII) is a leader in energy-efficient climate-control solutions. Dedicated to sustainability and creating comfortable and healthier environments for our residential and commercial customers while reducing their carbon footprint, we lead the field in innovation with our cooling, heating, indoor air quality, and refrigeration systems. Additional information is available at www.lennox.com. For media inquiries, contact PR@lennox.com.

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SOURCE Lennox International Inc.

FAQ

What is the value of Lennox's acquisition of NSI Industries' HVAC division?

Lennox (NYSE: LII) is acquiring NSI Industries' HVAC division for $550 million from Sentinel Capital Partners.

When will Lennox complete the acquisition of NSI Industries' HVAC division?

The acquisition is expected to close in the fourth quarter of 2025, subject to regulatory approvals.

Which brands are included in Lennox's acquisition of NSI Industries?

The acquisition includes Duro Dyne and Supco, which are market-leading manufacturers of HVAC components and accessories.

How will the NSI Industries acquisition benefit Lennox?

The acquisition will enhance Lennox's ability to deliver complete lifecycle solutions, expand its parts and supplies portfolio, and strengthen its position as a one-stop partner for the HVAC industry.

What is the geographic reach of the acquired NSI Industries HVAC division?

The acquired business has distribution and manufacturing sites across the USA and Canada, expanding Lennox's North American presence.