...TC YORK, Pa. -- York International Corp. said yesterday that it agreed to buy heater and air-conditioner maker Evcon Holdings Inc. for $133 million.
York also plans to subtract Evcon's outstanding debt from the purchase price at closing and will pay off that debt with the leftover cash, said Dean T. DuCray, vice president and chief financial officer at York. The debt figure hasn't been determined yet, he said.
The transaction is subject to antitrust approval. The purchase price is based on a 1995 earnings estimate for closely held Evcon, Mr. DuCray said. While he declined to provide the estimate, he said "revenue growth will be in the double digits." He didn't elaborate.
Wichita, Kansas-based Evcon makes heaters and air-conditioners for use in pre-fabricated, low-cost housing, and businesses like small restaurants and stores, Mr. DuCray said.
Evcon's compact furnaces are designed to fit in a closet, since trailer homes generally don't have a basement. They also present an economical choice for homeowners who don't need a larger furnace that needs to be kept in the basement for reasons of size and safety, he said.
"This appeals to the budget-conscious homeowner, not just the manufactured housing market," he said.
York, with about 15,000 employees, makes and markets air conditioners and heaters globally.