The companies hope the agreement will give the Japanese company even more of a presence in North America. They also believe it will allow Daikin to enter the mainstream ducted residential unitary segment and also grow their ductless business in North America by gaining access to Goodman’s distribution network. Goodman has a network of over 900 distribution points, of which 192 are company operated.
“Goodman is the best partner for Daikin in North America as we aim to become the leading global HVAC manufacturer,” said Daikin CEO and Chairman Noriyuki Inoue. “North America is the largest global HVAC market and most systems in this market are ducted-style, a segment where we have little presence. 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 capitalize 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.”
The transaction, pending regulatory approval, is expected to be completed during the fourth quarter of 2012.
“The combination of the Daikin Group and Goodman is the next step in becoming the definitive leader in the global HVAC marketplace,” said David Swift, CEO of Goodman Global. “I am enthusiastic about our companies coming together to further satisfy the needs of our customers now and in the future. “Because of the different complementary products and markets that our separate organizations serve, we do not expect any immediate organizational changes.”
Until closing, Daikin and Goodman will continue operating as separate companies.
Funds for this acquisition will be raised through the combination of internally generated funds, public policy financing, straight bond issuances, and bank loans. Daikin does not have any plans to issue new stock.
Publication date: 9/10/2012