Spinoff of transcritical CO2 and NH3/CO2 system manufacturer may close in first quarter.
In a report of its fourth-quarter and full year 2018 results, Lennox International, a Dallas-based global manufacturer of HVAC&R equipment, announced today that it plans to sell its Kysor/Warren business, and is aiming to close the sale in the first quarter.
Kysor/Warren, a Columbus, Ga,-based division of Lennox subsidiary Heatcraft Worldwide Refrigeration, manufactures refrigerated merchandisers and systems – including transcritical CO2 and ammonia/CO2 cascade systems – for food retail and foodservice outlets.
Lennox purchased Kysor/Warren from the Manitowoc Company in 2011.
In 2015, Kysor/Warren installed an ammonia/CO2 cascade refrigeration system at a Piggly Wiggly outlet in Columbus, Ga., which has reported energy savings compared to an HFC system running in the same store.
In 2018, Kysor/Warren installed a transcritical CO2 system at a Casa Ley store that it called the first supermarket installation of transcritical CO2 in Mexico.
The announcement of the impending sale of Kysor/Warren follows the sale last year of Lennox’s refrigeration businesses in Australia, Asia and South America. "We plan another divestiture in 2019 with the sale of the Kysor Warren business within our Refrigeration segment to focus on our businesses that have strong market positions and fit our growth profile,” said Todd Bluedorn, Lennox’s chairman and CEO, in a statement.
In Lennox's Refrigeration segment, Kysor Warren revenue in the fourth quarter was down significantly from the prior-year quarter, while the remainder of Lennox’s North America revenue was up high-single digits, Lennox reported.
For 2018 as a whole, Lennox's revenue was “a record $3.88 billion on a GAAP basis,” up 1% including the impact from refrigeration business divestitures and the July 2018 tornado damage at a residential manufacturing facility in Iowa.
“We plan another divestiture in 2019 with the sale of the Kysor Warren business within our Refrigeration segment to focus on our businesses that have strong market positions and fit our growth profile.”
– Todd Bluedorn, chairman and CEO, Lennox International