Daikin Industries, Ltd., a global leader in commercial and industrial air conditioning, announced today that it has signed a definitive agreement to acquire Goodman Global Group, Inc. from affiliates of Hellman & Friedman LLC for $3.7 billion. The deal brings together some of the strongest players in the global heating, ventilation and air conditioning (HVAC) marketplace, and combines the global, environmental, technological and commercial expertise of the Daikin Group with the logistical, residential and light commercial expertise of Goodman.
Sources report the acquisition illustrates Daikin Industries, Ltd’s strong commitment to the North American market.
In a signing ceremony today in Osaka, Japan, Noriyuki Inoue, the Chairman and CEO of Daikin Industries, Ltd , said, “Goodman is the best North American partner for Daikin as we aim to reinforce our position as the leading global HVAC manufacturer. Goodman’s market leading ducted product offering and extensive distribution network in the largest HVAC market in the world is complementary to Daikin’s existing products and distribution channels.”
David Swift, CEO of Goodman Global, Inc. stated that, “The combination of the Daikin Group and Goodman is the next step in becoming the definitive leader in the global HVAC marketplace. I am enthusiastic about our companies coming together to further satisfy the needs of our customers now and in the future.”
Swift added, “Because of the different complementary products and markets that our separate organizations serve, we do not expect any immediate organizational changes.”
Erik Ragatz, managing director at Hellman & Friedman LLC and chairman of the board of directors of Goodman Global Group, Inc. said, “The combination is a terrific outcome for both the Goodman and Daikin organizations and sets the stage for continued success for the new organization. Bringing together Goodman’s world class management team and execution capabilities with Daikin’s industry leading technology, equipment, and support programs create a global leader with unrivaled capabilities.”
Goodman is one of the leading HVAC brands in North America and caters to the large segment of the market that desires reliable and value-based indoor climate comfort, while the company’s Amana brand features premium performance. Goodman's Quietflex products offer flexible air duct solutions for the HVAC industry and residential applications.
The terms of the agreement have not been released. The transaction is expected to close in Goodman’s fourth quarter, subject to approval by regulatory authorities, shareholders and customary conditions. Until closing, Daikin and Goodman will continue operating as separate companies.
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