TH Lee buys Nortek for $1.75bn

The Boston firm, along with company management, has agreed to acquire the building products company from New York-based Kelso & Co.

Thomas H. Lee has agreed to buy building products company Nortek from New York buyout firm Kelso & Co. for $1.75 billion (€1.41 billion).

Nortek management will retain an approximately 33 percent stake in the new company, according to a statement. The transaction is expected to close in the third quarter of 2004.

The Providence, Rhode Island-based company designs, manufactures and distributes building, remodeling and indoor environmental control products for the residential and commercial markets. Some of its products include range hoods; heating and air conditioning systems; indoor air quality systems; and specialty electronic products.

Kelso & Co. originally took Nortek private back in June 2002 in a transaction valued at $1.6 billion.

TH Lee, which manages about $14 billion in capital, last month bought United Pet Group through its portfolio holding United Industries Corporation for $360 million. A week prior, the Boston firm recapitalized retail futures brokerage firm Refco in a transaction that values the company at $2.25 billion.