Ergotron, the Eagan-based maker of ergonomic mounting and mobility products for computer monitors, notebook computers and flat-panel displays, announced Monday that it will be acquired by Nortek Inc. of Providence, R.I.
Under terms of the deal Nortek will pay $280 million in cash for all of the outstanding common stock of privately held Ergotron. The deal is expected to close by the end of the year.
Ergotron, founded in 1982 by Harry Sweere, specializes in making wall- and desk-mount arms, desk stands, workstations and vertical lifts for a variety of display devices. Ergotron has a division and four subsidiaries in Europe and sells products in 67 countries.
For the year ended Sept. 30, Ergotron had unaudited net sales of $190 million, operating earnings of $28 million and approximately 1,200 employees worldwide.
Nortek Inc. manufactures branded residential and commercial ventilation, HVAC and home technology convenience and security products with $1.87 billion in annual sales and 7,800 employees. Nortek will merge Ergotron into its Home Technology Products segment.
"We believe this transaction will provide truly unique opportunities and will create value for both companies' shareholders, customers and employees," Joel Hazzard, president and CEO of Ergotron, said in a release.
Said Nortek Chairman and CEO Richard Bready: "Ergotron's management team has demonstrated a track record of growth in net sales and profits during the recent economic downturn."
PATRICK KENNEDY
