Beijer Ref is set to acquire Heatcraft Australia, a wholly owned subsidiary of Lennox International, in a deal worth around $90 million.
The transaction is expected to be completed in May.
"The deal is worth around $90 million, which values Heatcraft Asia Pacific at approximately nine times earnings before interest, tax, depreciation, amortisation and rent," according to a report in today's Australian Financial Review.
"Lennox will earn a bit more from the deal by separately selling Heatcraft's eight-hectare distribution hub in Milperra in Sydney's southwest for around $50 million."
Announcing the deal, Beijer Ref said arrangements are in place to immediately dispose of Heatcraft's New Zealand operations to address any competition concerns.
Heatcraft Australia also has operations in China and Singapore and the deal also includes just over 5% of shares in Thai compressor manufacturer Kulthorn Kirby.
Beijer Ref said the acquisition is in line with its strategy to grow outside Europe.
The acquisition means that the Asia Pacific region will now account for 19% of Beijer Ref's global sales.
Lennox said the sale of its Heatcraft business in Australia and Asia is part of a streamlining of its refrigeration business and plans are underway to also sell its South American operations to an unnamed buyer.
Heatcraft has more than 300 employees in Australia.