Fedders Corp. purchased 80% of the stock of Islandaire Inc. from its founder and sole shareholder, Robert E. Hansen Jr., for a combination of cash and preferred stock. The acquisition will allow Fedders to expand into the commercial HVAC sector, said Sal Giordano Jr., chairman and CEO, in a statement. The commercial and industrial businesses will now make up about one-third of the company's total sales.

Islandaire, which will now be Fedders Islandaire Co., manufactures and markets a line of specialized through-the-wall packaged terminal air conditioners (PTACs) and heat pumps.

It will be managed as an individual business unit, with Hansen remaining as president. Fedders intends to purchase the remaining 20% of the stock within three years. Islandaire sales in 2004 were approximately $26 million.

Islandaire is the platform for the company's launch of the new ultra-quiet packaged terminal air conditioner (PTAC) and packaged terminal heat pump (PTHP). The units are available in 7,000 Btus to 15,000 Btus with cool only, cooling/electric heat and heat pump/electric heat models available in 115 and 208/230 volts. Several add-on features include: a wireless remote control, center-mount electronic controls and a digital temperature readout, among others.