St. Paul sit-to-stand desk maker Ergotron sold for $650M

Ergotron, a St. Paul-based maker of sit-to-stand desks and other ergonomic products and accessories for work settings, is being acquired by a private equity firm in Houston for $650 million.

Ergotron's owner, London-based Melrose Industries, announced Monday it had entered an agreement to sell the manufacturing business to funds managed by the Sterling Group.

Ergotron had gross assets of roughly $773 million in 2021, with adjusted operating profits of $72.7 million, according to a news release on the sale. The company's products include monitor mounts, computer carts, standing desks and workstations for various industries, including health care, education and government. It also makes products for home offices.

The transaction is expected to close in the third quarter of this year.

Melrose Industries acquired Ergotron in 2016 when it bought its former parent company, Nortek Inc., for $2.8 billion.

"The sale of Ergotron is the final step in our Nortek ownership cycle, capping what has been a very successful acquisition for Melrose shareholders," Simon Peckham, chief executive of Melrose Industries, said in a statement.

An Ergotron spokesperson said the company had no comment. Sterling Group representatives did not respond to a request for comment.

Ergotron had year-over-year sales growth of 15% in 2021, driven by demand for more ergonomic products in health care settings and home offices as more people chose to work from home, Melrose Industries' 2021 annual report said. For 2021, Ergotron had revenue of about $293 million, up from $267 million in 2020.

Ergotron was founded in 1982 and employs 1,300 worldwide, according to Pitchbook, a mergers and acquisition and investment research firm.

Sterling Group has $5.7 billion in assets under management. Half of the firm's investments have been in companies carved out of larger corporations.