PLATINUM EQUITY TO SELL HEAT CONTROLLER TO LENNOX

Platinum Equity signed a definitive agreement to sell Heat Controller, a North American HVAC equipment supplier with the Comfort-Aire and Century brands, to Lennox (NYSE:LII).

Rhea-AI Summary

Platinum Equity signed a definitive agreement to sell Heat Controller, a North American HVAC equipment supplier with the Comfort-Aire and Century brands, to Lennox (NYSE:LII). Financial terms were not disclosed.

The deal completes Platinum Equity’s exit from its MARS investment, following the 2025 sale of the MARS parts division to CSW (NYSE:CSW) for $650 million. Closing is expected later this year, subject to customary conditions and regulatory approvals.

Argus Jun 18 session

+3.16% close to close Open Argus

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News Market Reaction – LII

On Jun 18, the day this news came out, LII closed 3.16% above the previous close.

Data tracked by StockTitan Argus for the Jun 18 session.

Key Figures

MARS parts sale: $650 million Assets under management: $48 billion Operating companies: approximately 60 +3 more

MARS parts sale

$650 million

Divestiture of MARS parts division to CSW Industrials in 2025

Assets under management

$48 billion

Platinum Equity AUM referenced in transaction announcement

Operating companies

approximately 60

Number of portfolio companies managed by Platinum Equity

Acquisitions completed

more than 550

Total acquisitions completed by Platinum Equity over 30 years

Acquisition year

2024

Year Platinum Equity acquired Heat Controller as part of MARS

Firm founded

1995

Founding year of Platinum Equity mentioned in the release

Historical Context

5 past events · Latest: Jun 03

5 events

1. Jun 03

   Product design award

   24h Move

   -0.2%

   Cold climate heat pump earned a GOOD DESIGN Award for performance in extremes.

2. May 21

   Dividend increase

   24h Move

   -2.6%

   Board approved raising quarterly dividend per share payable in July 2026.

3. May 04

   CSR/community program

   24h Move

   -2.2%

   Opened 2026 Feel The Love nominations to donate HVAC systems to community heroes.

4. Apr 29

   Q1 2026 earnings

   24h Move

   +4.5%

   Reported Q1 revenue growth and maintained EPS and free cash flow guidance.

5. Apr 08

   Earnings schedule

   24h Move

   +6.1%

   Announced date and call details for upcoming Q1 2026 financial results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

hvac/r, definitive agreement, assets under management

3 terms

hvac/r technical

"Motors & Armatures, Inc. ("MARS"), a leading distributor of HVAC/R parts, supplies"

HVAC/R stands for Heating, Ventilation, Air Conditioning and Refrigeration — the systems and equipment that control indoor temperature, airflow, humidity and cold storage in buildings and vehicles. For investors, HVAC/R matters because these systems drive predictable revenue and operating costs across construction, real estate, manufacturing and retail: they affect energy bills, maintenance spending, regulatory compliance and the lifespan and value of assets, much like a building’s plumbing or a store’s walk-in fridge.

definitive agreement financial

"announced that it has signed a definitive agreement to sell Heat Controller"

A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.

assets under management financial

"Platinum Equity is a global investment firm with approximately $48 billion of assets under management"

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Sale positions Heat Controller for continued growth

Divestiture represents final exit of the firm's investment in HVAC/R distributor Motors & Armatures

LOS ANGELES, June 18, 2026 /PRNewswire/ -- Platinum Equity today announced that it has signed a definitive agreement to sell Heat Controller, a leading HVAC equipment supplier, to Lennox (NYSE: LII). Financial terms of the transaction were not disclosed.

Headquartered in Jackson, Michigan, Heat Controller serves distributors across North America through its established Comfort-Aire and Century brands. Heat Controller was acquired by Platinum Equity in 2024 as part of its investment in Motors & Armatures, Inc. ("MARS"), a leading distributor of HVAC/R parts, supplies and equipment.

"The sale of Heat Controller represents the culmination of our MARS investment and delivers a successful outcome driven by focused execution on our original investment thesis," said Platinum Equity Co-President Jacob Kotzubei. "During our stewardship, we partnered with the company's management team to create value through new product introductions, strategic M&A, synergy realization, investments in leadership talent, and an exit strategy that maximized value while divesting separate divisions to their most natural strategic buyers."

"We are grateful for our partnership with the entire MARS and Heat Controller team and are proud of what we accomplished during our ownership," said Platinum Equity Managing Director Dan Krasner. "We believe Lennox is an ideal strategic home for the Heat Controller business and are confident the company is well positioned to continue building on its momentum in this next chapter as part of the Lennox platform."

"We appreciate Platinum Equity's support and partnership during an important chapter in our company's evolution," said Philip Windham, Chief Executive Officer of Heat Controller. "Their operational resources, strategic guidance and commitment to investing in the business helped strengthen our platform and create new opportunities for growth. We are excited to begin our next chapter with Lennox and continue delivering the service, flexibility and value our customers depend on."

After investing in MARS in July 2024, Platinum Equity led a comprehensive transformation of the company, which included:

• Completing the strategic acquisition of Global, the Source, bringing US-based in-house manufacturing capabilities to MARS and enhancing the combined company's financial profile
• Expanding into new product categories such as pads, pans, equipment hangers, float switches, chemicals, and other accessories
• Driving significant cost savings across procurement, freight, and damage reduction
• Recruiting a world-class management team from a leading HVAC OEM, led by Philip Windham as CEO
• Divesting the MARS parts division in 2025 to CSW Industrials, Inc. (NYSE: CSW) for $650 million
• Now divesting Heat Controller to Lennox

The Heat Controller transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.

O'Melveny & Myers LLP is serving as legal advisor to Platinum Equity on the sale of Heat Controller.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $48 billion of assets under management and a portfolio of approximately 60 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O^® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 30 years Platinum Equity has completed more than 550 acquisitions.

About Lennox
Lennox (NYSE: LII) is a leader in energy-efficient building solutions and is committed to creating healthier and more comfortable environments. Serving residential and commercial customers, the company delivers innovative heating, cooling, indoor air quality, refrigeration, and water heating systems. Through trusted products, parts, and services, and advanced technology, Lennox delivers connected solutions that support the full lifecycle of customer needs. Additional information is available at www.lennox.com. Media inquiries may be directed to PR@lennox.com.

Contact:

Dan Whelan
Platinum Equity
dwhelan@platinumequity.com

View original content:https://www.prnewswire.com/news-releases/platinum-equity-to-sell-heat-controller-to-lennox-302804332.html

SOURCE Platinum Equity

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Platinum Equity announce about selling Heat Controller to Lennox (NYSE:LII)?

Platinum Equity announced a definitive agreement to sell Heat Controller to Lennox. According to Platinum Equity, Heat Controller is a leading HVAC equipment supplier, and the transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.

When is the Heat Controller sale to Lennox expected to close?

The Heat Controller sale to Lennox is expected to close later this year. According to Platinum Equity, completion of the transaction depends on customary closing conditions and required regulatory approvals before Heat Controller becomes part of the Lennox platform.

How is CSW (NYSE:CSW) connected to the Platinum Equity and Heat Controller transactions?

CSW is connected through a prior divestiture from Platinum Equity’s MARS investment. According to Platinum Equity, it sold the MARS parts division in 2025 to CSW Industrials for $650 million, and is now divesting Heat Controller to Lennox as the final MARS exit.

What does Heat Controller do in the HVAC market?

Heat Controller supplies HVAC equipment across North America under the Comfort-Aire and Century brands. According to Platinum Equity, the company serves distributors and was positioned for growth through new products, strategic M&A, cost savings, and leadership investments during Platinum Equity’s ownership.

Why does Platinum Equity view Lennox as a strategic buyer for Heat Controller?

Platinum Equity views Lennox as an ideal strategic home for Heat Controller. According to Platinum Equity, the combination is expected to let Heat Controller build on its momentum as part of Lennox’s energy-efficient building solutions platform, benefiting from broader resources and market reach.

What transformation steps did Platinum Equity undertake at MARS before divesting Heat Controller?

Platinum Equity led a comprehensive transformation at MARS before divesting Heat Controller. According to Platinum Equity, actions included acquiring Global, the Source, expanding product categories, driving cost savings in procurement and freight, recruiting a new management team, and completing two divestitures, including the CSW sale.

Who advised Platinum Equity on the Heat Controller sale to Lennox?

O'Melveny & Myers LLP is serving as legal advisor to Platinum Equity on the Heat Controller sale. According to Platinum Equity, the firm is supporting the transaction process as Platinum completes its exit from the MARS investment through the divestiture to Lennox.