This year was full of handshakes, contracts drawn, arrangements signed, and acquisitions recorded. Perhaps the biggest development was the acquisition of Goodman, the largest privately held air conditioning and heating equipment manufacturer in the United States. Apollo Management L.P. signed a definitive agreement with Goodman on Nov. 18, under which Apollo said it will acquire Goodman for approximately $1.43 billion.
"We are pleased to announce the important transition with Apollo," said John B. Goodman, chairman of Goodman's board. "We believe that our strong brand names and market-leading position, combined with Apollo's financial resources and extensive relationships, will further Goodman's position as a premier company in the [HVAC] industry."
John B. Goodman will continue to serve on Goodman's board, and the senior management team, led by president and chief executive officer Charles A. Carroll, will continue to serve in their current capacities.
Apollo, a private investment firm, said it is glad to have Goodman in its ranks. Companies owned or controlled by Apollo, or in which it has or has had significant equity investment, include AMC Entertainment Inc. and General Nutrition Centers Inc.
The acquisition of Sporlan Valve Co. by Parker Hannifin Corp. made headlines in October. Parker made Sporlan a new division within Parker's Climate and Industrial Controls Group. "Sporlan is a very successful company we've admired for a long time," said Lynn Cortwright, president of Parker's Climate and Industrial Controls Group.
"Together, our companies will have the most complete offering of valves and controls for the widest range of applications in the refrigeration and air conditioning market today."
Sporlan President Ken Ohlemeyer (right) shows some of his company’s product offerings to Lynn Cortright, president of Parker’s Climate and Industrial Controls Group. (Photo courtesy of the Washington Missourian.)
Parker Hannifin and Siemens signed a joint collaboration agreement to design, develop, market, and service mechanical components and electronic controls in packaged systems. Targeted applications will include heat pumps, chillers, close-control/telecom units, and PTACs. Management for the collaboration is in Broadview, Ill., for North America and in Zug, Switzerland, for Europe.
In yet another acquisition, Andover Controls was purchased by Schneider Electric. Schneider, which purchased TAC Americas in 2003, reportedly paid $403 million in cash to acquire 100 percent of Andover's shares.
The new entity is called Tour Andover Controls.
Carrier acquired Linde AG's Refrigeration Division for approximately $305 million. The division, headquartered in Cologne, Germany, manufactures refrigerated display cases and subsystems and industrial-commercial refrigeration systems.
Other noteworthy transactions in 2004 included: Danfoss' and Turbocor's joint venture. With the transaction, Danfoss expanded its commercial compressor product line to include high-efficiency oil-free centrifugals, and Turbocor tapped into the sales and service organizations of Danfoss to further expand field installations. Danfoss North America Motor Controls' and Trane's exclusive, brand-label supplier agreement. Danfoss will supply Trane with brand-labeled, variable-frequency drives for its commercial air conditioning systems. Hart & Cooley's and J&J Register's brand consolidation (AmeriVent gas vent and chimney systems and J&J Register brands). Hart & Cooley's integration of Ward Industries and AMPCO brands. Armstrong Pumps' acquisition of the business assets of Howard Anderson Ltd. and the trade names Holden Brooke Pullen, Baric, and RMI. The new company is called Armstrong Holden Brooke Pullen Ltd. S.A. Armstrong's purchase of the majority assets of Plant Energy Systems Ltd. This established a new company called Armstrong Integrated Systems Ltd., which specializes in off-site construction and the preassembly of building services equipment, from fully packaged HVAC and fire plant rooms to frame-mounted boiler systems. Carrier Corp.'s Replacement Components Division (RCD) joint marketing agreement with Paramount Concepts Ltd. Carrier is making available the products of Paramount, including its adjustable register installation frame and flexible duct hanger. Emerson Climate Technologies' strategic partnership with Zamil Air Conditioners, an international manufacturer of A/C systems in the Middle East. Emerson's strategic partnership with its Design Services Network (Sidney, Ohio) and Maine Stay Design (Camden, Maine). Greenheck's agreement to purchase Airolite Co., a manufacturer of architectural louvers, grilles, and sun control products. Eaton Corp.'s and Johnson Controls' agreement to offer variable-speed AC drive technologies, systems, and services. Fedders Corp.'s purchase of Addison Products Co.'s assets. Addison, a division of Heat Controller, is now Fedders Addison Co.
Publication date: 12/27/2004