Hopes to expands its geographic reach in North America

Daikin Industries has announced acquiring Goodman Global Group, with the signing of a definitive agreement on August 29 by Daikin, Goodman, and Goodman’s major shareholder, Hellman & Friedman LLC (H&F).

According to the news release, Daikin will purchase 100% of Goodman’s stock with the total acquisition value pegged at $3.7 billion, and the transaction, pending regulatory approval, is expected to be completed during the fourth quarter of 2012 calendar year.

The announcement said that Goodman has a presence in the ducted-style residential unitary HVAC segment in North America, and Daikin is an HVAC manufacturer offering products, including ductless air conditioning and heat pump systems for residential and commercial applications as well as large-sized HVAC systems for buildings and factories, and that through the acquisition, Daikin will fully enter the ducted-style air conditioning market for residential and commercial applications in North America.

On the occasion of the acquisition, Noriyuki Inoue, Chairman and CEO of Daikin, said: “Goodman and Daikin can enjoy a complementary relationship by having more channels in the market to offer Goodman’s market-leading ducted products and Daikin’s existing products. Daikin will also capitalise on Goodman’s lean management know-how to help us improve the earning power of the entire Daikin Group and expand our business in emerging and high volume markets globally.”

David L Swift, President and CEO of Goodman, added: “This is an opportunity for Goodman to grow globally as well as in the North American market by leveraging Daikin Group’s technical expertise, environmental technologies, and North American commercial expertise. With complementary core businesses, we are in a very competitive position to grow all segments of Goodman’s and Daikin’s business. We look forward to a successful future as a part of a winning team and are enthusiastic about creating more opportunities to excel.”