Madison IAQ LLC

Overview Key strengths Key risks Increasing scale and improved product diversity in the indoor air quality industry. High post-acquisition leverage of about 7x. Solid, albeit lower, profit margins. Input cost inflation not entirely offset by sales price increases over the last 12 months. Macroeconomic headwinds that may slow industry growth. We forecast the company?s revenue will top $3 billion for the first time in 2022. We attribute this rapid growth largely to the acquisitions of Nortek Air (Broan and NuTone bath fans, among other products) and Big Ass Fans (BAF) in 2021. While the company?s scale is considerably improved, we view its scope and geographic diversity as still somewhat limited. More than 80% of sales are in the U.S., and

...Madison IAQ LLC will have nearly doubled in size between 2020 and the current fiscal year. We forecast the company's revenue will top $3 billion for the first time in 2022. We attribute this rapid growth largely to the acquisitions of Nortek Air (Broan and NuTone bath fans, among other products) and Big Ass Fans (BAF) in 2021. While the company's scale is considerably improved, we view its scope and geographic diversity as still somewhat limited. More than 80% of sales are in the U.S., and Madison IAQ's products are limited to the indoor air quality industry, in which it competes in some cases with larger firms such as Carrier Global Corp. and Vertiv Group Corp. That said, Madison IAQ has sound end-market mix--with residential construction and repair and remodeling accounting for...

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