Sentinel Capital Partners Divests NSI Industries' HVAC Division to Lennox for $550 Million

Sentinel Capital Partners Sells NSI Industries' HVAC Division

In a significant move within the HVAC sector, Sentinel Capital Partners has announced the sale of NSI Industries' HVAC division, which features prominent brands Duro Dyne and Supco, to Lennox International for a substantial $550 million in cash. This strategic divestiture aims to redirect NSI Industries back to its original focus as a manufacturer of essential electrical products.

The divestiture was detailed by Sentinel Capital Partners on October 16, 2025, emphasizing that this sale not only benefits Lennox by adding established HVAC brands to its portfolio but also allows NSI to streamline its operations. NSI Industries plans to concentrate on producing branded electrical components sold under renowned names such as Bridgeport, Polaris, and Tork. Their offerings will predominantly include insulated connectors, fittings, and other components that experience steady demand driven by the replacement cycle in the market.

John Van Sickle, a partner at Sentinel, highlighted the strategic fit between NSI's HVAC segment and Lennox, suggesting that the acquisition will leverage NSI's strong historical reputation and its management team's delivery of superior service to electrical customers across the nation. This partnership symbolizes a return for NSI to its roots in the electrical products realm, reinforcing its identity as an esteemed supplier to distributors.

The sale comes after NSI has been part of Sentinel's portfolio for four years. John MacQuarrie, President of NSI's HVAC division, expressed pride in their time within the company while looking forward to becoming part of the Lennox team, which is committed to operational excellence, product innovation, and maximizing value for customers.

For Sentinel Capital Partners, this sale represents a successful exit with a solid financial return, aligning with its strategy of supporting midmarket companies to overcome challenges and grow. Moreover, the firm has a robust history in electrical manufacturing and distribution, having previously invested in businesses like ECM Industries and Power Products, which underscores its expertise in this niche market.

As Sentinel Capital Partners continues its journey, it aims to capitalize on its knowledge and investments across varied industrial sectors, reporting over $11.2 billion in capital raised since its inception in 1995. The firm focuses on niche markets, offering operational support and strategic guidance to portfolio companies.

Based in Huntersville, North Carolina, NSI Industries is recognized as a leading manufacturer and supplier of electrical components to distributors throughout North America. With a product catalog exceeding 10,000 items, their commitment to delivering high-quality products remains strong.

Lennox International, recognized for its energy-efficient climate control solutions, will now incorporate the NSI HVAC division into its operations. This acquisition aligns with Lennox’s mission to create sustainable and comfortable environments for both residential and commercial sectors, utilizing innovative HVAC systems and a wide range of related parts and services.

In summary, the acquisition of NSI's HVAC division speaks volumes about both companies’ strategies and positions in the market. As Lennox expands its offerings and NSI refocuses on electrical components, the shift signifies a dynamic evolution within the HVAC and electrical industries, aiming to enhance operational efficiencies while catering to customer needs.

This strategic transaction is expected to not only benefit the companies involved but also provide valuable solutions and products to existing and new customers across the markets they serve.