Madison Air eyes IPO

HVAC firm Madison Air announced Monday that it has confidentially filed for an initial public offering. 

What’s happening: Madison Air owns several brands that serve the residential HVAC sector, including whole-home IAQ purveyor AprilAire; Broan-NuTone, which sells range hoods and home ventilation systems; and zoning systems maker EWC Controls.

• Madison acquired HVAC manufacturer Nortek Air in 2021 for $3.6 billion, before selling Nortek’s residential equipment business — including the Maytag and Frigidaire lines — to Rheem in late 2024. (Nortek’s commercial business remains part of Madison Air.)
• While the company’s financials remain undisclosed, a 2021 report noted it was generating over $2 billion in annual revenue at the time. 

The big picture: Madison’s planned offering is reflective of broader investor appetite for “boring” but stable businesses, including those with “zero sex appeal,” as Axios put it. 

Catch up quick: Madison Air is a subsidiary of Madison Industries, an industrial conglomerate founded in the 1990s by Chicago-based entrepreneur Larry Gies.

• Formerly known as Madison Indoor Air Quality, Madison Air was formed through a series of acquisitions beginning in 2017. 
• Beyond HVAC, its portfolio includes brands that serve the data center, indoor agriculture, and healthcare industries. 

Of note: Since Madison filed for its offering confidentially, many details won’t be disclosed until it files a public registration statement. “The timing and other terms of the proposed offering remain subject to the completion of the SEC review process, as well as market and other conditions,” the company said Monday.