Fedders Acquires 80% of Islandaire, Inc.
CONTACT:
Robert Laurent, Jr.
(908) 604-8686
investorrelations@fedders.com
LIBERTY
CORNER, New Jersey -- March 7, 2005
-- Fedders Corporation, (NYSE: FJC), a leading
global manufacturer of air treatment products,
including air conditioners, air cleaners, dehumidifiers
and humidifiers and thermal technology products,
today announced that it has purchased eighty
percent (80%) of the stock of Islandaire, Inc.
from its founder and sole shareholder, Robert
E. Hansen, Jr., for a combination of cash and
preferred stock.
Located
in Ronkonkoma, New York, Islandaire, which will
become known as Fedders Islandaire Company,
manufactures and markets a line of specialized
through-the-wall packaged terminal air conditioners
(PTACs) and heat pumps, primarily for replacement
applications in apartment buildings, hotels
and motels, and in institutional buildings such
as schools, offices, hospitals and nursing homes.
Islandaire's replacement PTAC units fit into
existing wall openings without alteration to
the structure of the building.
Islandaire
will be managed as an individual business unit,
with Mr. Hansen remaining as President. Fedders
intends to purchase the remaining twenty percent
(20%) of Islandaire stock within three years.
Islandaire sales in 2004 were approximately
$26 million.
Commenting
on the acquisition, Fedders Chairman and Chief
Executive Officer, Sal Giordano, Jr. said, "This
acquisition enables Fedders to further expand
into the commercial HVAC sector. With the addition
of Islandaire, the commercial and industrial
air treatment businesses of Fedders will be
approximately one third of total sales."
Robert
Hansen added, "The Islandaire team is very
pleased to become a part of Fedders. Together,
we will broaden each company's product offering
and become an even more formidable industry
leader. As an example, Islandaire will be the
platform to launch Fedders' new, ultra-quiet
PTAC into the new construction market, which
is significantly larger than the replacement
market. We look forward to this opportunity
and to continued growth as part of Fedders."
This
news release includes forward-looking statements
that are covered under the "Safe-Harbor"
clause of the Private Securities Litigation
Reform Act of 1995. Such statements are based
upon current expectations and assumptions.
Actual
results could differ materially from those currently
anticipated as a result of known and unknown
risks and uncertainties including, but not limited
to, weather and economic, political, market
and industry conditions and reliance on key
customers. Such factors are described in Fedders'
SEC filings, including its most recently filed
annual report on Form 10-K. The company disclaims
any obligation to update any forward-looking
statements to incorporate developments occurring
after release of announcement. Visit the Fedders
investor information website at http://www.fedders.com
to access additional information on Fedders.
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