Business Acquisitions and Divestitures

9 Months Ended

Sep. 30, 2026

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Business Acquisitions and Divestitures

Business Acquisitions and Divestitures

In May 2025, the Company completed the acquisition of Research Products Corporation ("AprilAire", and such acquisition, the "AprilAire Acquisition") which expanded its operations within its Residential segment. The results of the acquired business have been included in the Company's condensed consolidated financial statements from the acquisition date.

The AprilAire Acquisition was funded with a combination of $160.1 of contributed capital, $410.0 cash on hand (including amounts paid for working capital settlement), a $1,750.0 Incremental Term Loan, and $217.3 of rollover equity in the form of redeemable equity interests issued to certain former owners of AprilAire. The redeemable equity were redeemable following the third anniversary of the acquisition closing date at a per unit intrinsic value of Madison Indoor Air Solutions LLC and therefore classified as redeemable noncontrolling interests. In connection with the IPO and the Organizational Transactions, the redeemable equity interests were exchanged for shares of the Company's Class A common stock and are no longer classified as mezzanine equity.

The AprilAire Acquisition includes a deferred consideration arrangement that requires additional consideration of $90.0 to be paid by the Company to the sellers of AprilAire of which $5.7 represents a liability assumed at acquisition. The present value of deferred consideration at acquisition was $74.2. Amounts are payable 2 years after the acquisition date. As of September 30, 2026 the liability was $87.0 and is recorded in accrued expenses and other current liabilities. As of December 31, 2025, the liability was $77.2 and is recorded in other long-term liabilities.

For the nine months ended September 30, 2025, pro forma net sales and income from continuing operations were $2,587.2 and $111.7, respectively. Pro Forma results give effect to the AprilAire Acquisition, together with adjustments directly attributable to the transaction, including acquisition financing and other transaction related adjustments, as if such transaction had occurred on January 1, 2024.

There were no acquisitions during the three and nine months ended September 30, 2026.