Engineering turnaround specialist Melrose Industries Plc said on Wednesday it had agreed to buy Nortek Inc in a cash deal valuing the US-based residential products maker at $1.436 billion.

The offer of $86 per Nortek share represents a premium of about 38 percent to Nortek's close on Tuesday.

Melrose, which follows a buy-improve-sell model akin to private equity, has been scouting for a deal since it sold its utility consumption metering business to Honeywell International Inc last year.

The Nortek board intends to recommend the offer, Melrose said in a statement. – Reuters