Lennox to acquire HVAC parts brands for $550 million

Lennox announced Monday that it’s purchasing the HVAC division of NSI Industries from private equity firm Sentinel Capital Partners for approximately $550 million.

What’s happening: The division houses several brands that produce a range of HVAC parts and accessories, including Duro Dyne and Supco, and generates 60 percent of its revenue from the commercial market and 40 percent from residential. 

• Why it matters: Lennox is moving to broaden its parts and supplies offerings. 

Zoom out: Sentinel Capital Partners acquired NSI Industries for an undisclosed sum less than one year ago, in November 2024. A news release at the time said that NSI, based in North Carolina, makes and distributes more than 20,000 HVAC and electrical products throughout North America.

What they’re saying: “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,” Lennox CEO Alok Maskara said in a statement. 

• “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,” he added.

Go deeper: On a July earnings call, Maskara noted, “We would be obviously very open to acquisitions,” adding that Lennox has a “highly underutilized distribution network” and “could add a lot more products compared to what we are selling today, without adding that much fixed cost.” 

• In May, the company announced a joint venture with Italian manufacturer Ariston Group to sell residential water heaters in the U.S. and Canada, beginning in 2026. 

What we’re watching: The acquisition is expected to close in the fourth quarter of this year, pending regulatory approval.