Allis-Chalmers Plans to Sell Air Quality Business
WEST ALLIS, Wis. (AP) _ Allis-Chalmers Corp. said Tuesday it has agreed to sell its air quality control business for $245 million in cash to Snyder General Corp., a Texas- based manufacturer of heating and air conditioning equipment.
Allis-Chalmers’ air quality control business is operated by the company’s American Air Filter subsidiary, which is based in Louisville, Ky.
The company described American Air Filter as the world’s largest supplier of air filter products and well as a supplier of heating, ventilating and air conditioning equipment and air pollution control products.
The air quality control segment had $275 million in sales last year.
Allis-Chalmers filed for protection from its creditors under federal bankruptcy laws last June while it prepares a financial reorganization plan.
Wendell F. Bueche, Allis-Chalmers’ chairman and chief executive, said the sale is subject to review by the various parties in the reorganization proceedings and the approval of regulators and the Bankruptcy Court as well as by the Allis-Chalmers and Snyder General boards.
The acquisition will bring Snyder General, which is based in Dallas, ″strengths of reputation, product and distribution that strategically complement our current business,″ said Richard Snyder, chairman and chief executive.
Snyder General is a privately-held company with sales in excess of $500 million and employs about 5,000 people.
Its eight domestic and two European manufacturing facilities produce McQuay commercial air conditioning and refrigeration products, Arcoaire and Comfortmaker residential and light commercial heating and cooling equipment, Barry Blower fans, Webster air handling systems and fan coils and Climate Control refrigeration systems.