Lennox International, Inc. ( LII ) announced Thursday that it has completed the purchase of the HVAC Division of NSI Industries from Sentinel Capital Partners in a cash transaction valued at approximately $550 million.

The deal includes the well-known Duro Dyne and Supco brands, marking a significant expansion of Lennox’s heating, ventilation, and air conditioning portfolio.

With this divestiture, NSI will pivot to a pure-play electrical manufacturing business, focusing on core brands such as Bridgeport, Polaris, and Tork.

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The firm plans to strengthen its position as a supplier of high-quality electrical components that drive consistent, replacement-based demand in industrial and commercial markets.

The acquisition strengthens Lennox’s presence in the HVAC components sector by adding two established brands with a strong footprint in the North American market.

Sentinel partner John Van Sickle called the transaction an “excellent strategic fit,” emphasizing that it allows NSI to return to its core electrical roots while giving Lennox a growth platform within HVAC manufacturing and distribution.

NSI’s HVAC President John MacQuarrie expressed enthusiasm about joining Lennox, saying that the focus will remain on operational excellence and product innovation to deliver more value to customers as part of Lennox’s broader network.

Sentinel Capital Partners, known for investing in midmarket industrial and manufacturing companies, has a track record of transforming sector leaders.

Its portfolio has included firms such as ECM Industries, Power Products, and Chromalox, all of which specialize in electrical, control, and industrial systems.

The sale of NSI’s HVAC division continues Sentinel’s strategy of repositioning assets to maximize long-term value.

The move comes amid consolidation trends in the HVAC industry, as companies seek scale to meet demand for energy-efficient systems and supply chain resilience.

Price Action: LII shares were trading higher by 0.05% to $527.25 at last check Thursday.

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