Nortek Offers $265 Million for Transway

Nortek said Wednesday that it offered to buy Transway International for $265 million, a move that would double Nortek’s size.

Officials at Transway’s headquarters in White Plains, N.Y., said the company was not for sale and saw no reason for the two companies to enter into negotiations.

The acquisition of Transway would be the largest ever by Nortek, a growing diversified company with major holdings in construction products. The company had a profit of $16.9 million on revenue of $506 million in 1984.

Posted ’84 Profit

Transway has operations in several transportation services and in the distribution of liquefied petroleum gas. It reported a 1984 profit of $23.3 million on sales of $867 million.

John W. Wolcott, Transway’s chairman and chief executive, said he would ask the company’s directors to reject the Nortek offer.

A Transway spokeswoman said Wednesday that “the board will be meeting very soon” to discuss the offer.

Ralph R. Papitto, Nortek’s chairman, said that the $40-a-share offer was made Tuesday and that he would consider taking the offer directly to shareholders through a cash tender offer if Transway officials refused to discuss the proposal.

Transway stock rose $9.375 a share to $43.25 in consolidated New York Stock Exchange trading Wednesday. Vortek closed at $16.50, up 87.5 cents.

Papitto said Nortek already owns 333,401 shares of Transway’s common stock and has an agreement to purchase 400,000 more shares, which would give it 11% of Transway’s outstanding common stock.