August 29th, 2012
Goodman Acquired by Daikin, a Global HVAC Leader, for $3.7 Billion
HOUSTON, Tex.
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.
This move would bring together some of the strongest players in the global heating, ventilation and air conditioning (HVAC) marketplace. By combining the global, environmental, technological and commercial expertise of the Daikin Group and the logistical, residential and light commercial expertise of Goodman, an opportunity is created to achieve a level of success in the HVAC marketplace not possible as individual companies.
This bold step signals 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.” Mr. Swift further stated that, “Because of the different complementary products and markets that our separate organizations serve, we do not expect any immediate organizational changes.”
Daikin Industries, Ltd., a Nikkei 225 index stock exchange member, is a global leader in commercial and industrial air conditioning, with a significant business in Japan and a well-established presence in China, Asia and Oceania, Europe, and North America. The company is also one of the leaders in the fluorochemicals industry. The company employs roughly 44,000 people, has manufacturing operations in 18 countries, and a sales presence in more than 90 countries.
Erik Ragatz, Managing Director at Hellman & Friedman LLC and Chairman of the Board of Directors of Goodman Global Group, Inc. stated, “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.”
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.
Simpson Thacher and Bartlett LLP acted as legal counsel to Goodman and Hellman & Friedman and Barclays and J.P. Morgan Securities LLC served as financial advisors to Goodman in connection with the transaction. Davis Polk & Wardwell LLP acted as legal counsel and GCA Savvian Corporation and Merrill Lynch acted as financial advisors to Daikin in connection with the transaction.
About Hellman & Friedman
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, H&F has raised and, through its affiliated funds, managed over $25 billion of committed capital. The Firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including energy & industrials, internet & digital media, software, business & marketing services, financial services, insurance, media and healthcare. For more information on Hellman & Friedman, visit www.hf.com.
About Goodman Global Group, Inc.
Goodman is a privately held company owned by Hellman and Friedman (and its affiliates), a private equity investment firm, and a large North American manufacturer of HVAC products for residential and light commercial use based on unit sales.
Goodman’s headquarters is located in Houston, Texas and Goodman has several manufacturing locations in Texas and Tennessee. Quietflex brand products are manufactured in Texas, Florida, Arizona and Pennsylvania. Total employees number over 4,500.
Goodman sells its products through a distribution network with more than 900 total distribution points comprised of both company-operated distribution centers and independent distributors.
The company’s products are predominantly marketed under the Goodman® and Amana® brand names. 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. Quietflex offers flexible air duct solutions for the HVAC industry and residential applications.
For more information please visit: www.goodmanmfg.com, www.amana-hac.com, and www.quietflex.com.
About Daikin Industries Ltd
Daikin Industries, Ltd. (DIL) is a Fortune 1000 company with 2011 revenues in excess of ¥1218 billion and more than 44,000 employees worldwide, making it the number one commercial HVAC manufacturer in the world. Daikin is engaged primarily in the development, manufacture, sales and aftermarket support of heating, ventilation, air conditioning and refrigeration equipment, refrigerants and other chemicals, as well as oil hydraulic products. DIL is headquartered in Osaka, Japan, has manufacturing operations in 18 countries and a sales presence in more than 90 countries.
DIL’s North American HVAC operations comprise of McQuay International, American Air Filter and Daikin AC Americas Inc.
For more information please visit www.daikin.com.
Inquiries:
Goodman Corporate Communication Department, Daikin Industries, Ltd.
Rex Anderson – 713.263.5064
rex.anderson@goodmanmfg.com
Daikin US Corporation
ACandH@daikin.co.jp
Kosei Uematsu
kosei.uematsu@daikin.co.jp