Lennox has agreed to sell its European commercial HVAC and refrigeration business to funds managed by Syntagma Capital.

The transaction is expected to be completed in Q4 of 2023.

Lennox manufacturing plant in Longvic, France – Lennox EMEA

According to the company, the transaction is subject to obtaining the required consent, receiving works council consultation, and meeting the closing conditions. The value of the deal has not been shared

Lennox said in November 2022 that it was seeking "strategic alternatives" for its European business so as to focus on operations in North America. The European business accounts for about five percent of Lennox's revenue.

The European business has locations in Germany, France, and Spain and is comprised of three brands: Lennox, Friga-Bohn, and HK Refrigeration. The company manufactures and sells HVAC products and systems including package units, rooftop units, chillers, air handlers, and fan coils, as well as refrigeration products such as air-cooled condensers, fluid coolers, and compressor races among others.

"The agreement to sell the European commercial HVAC and refrigeration business will be the best way to bring closure to our portfolio simplification decision announced last year,” said CEO Alok Maskara.

“Our focus on North America will enable us to better serve our customers and achieve growth acceleration and margin resiliency. Our European commercial HVAC and refrigeration businesses have been part of Lennox for many years, and I want to thank the talented employees of those businesses for their dedication and contributions."

Last month, Lennox sold its German process cooling business Hyfra Industriekühlanlagen GmbH to Glen Dimplex.

Syntagma was established in 2009 and is based in Brussels, Belgium. The company has invested €1.1 billion ($1.17bn) in over 40 companies with revenues in excess of €4 billion ($4.26bn). Earlier this year, Syntagma Capital entered exclusive talks with manufacturing company Nexans to acquire its LAN/data center and telecom/fiber division. The acquisition was poised to be completed by the second half of 2023.

Syntagma currently only lists one portfolio company on its website: Erasteel, which provides high-speed steels for machinery.