Breaking News: Daikin Acquires Goodman
Daikin Industries Ltd., Osaka, Japan, signed a definitive agreement to acquire Goodman Global Group Inc., Houston, from affiliates of Hellman & Friedman LLC for $3.7 billion. The transaction, pending regulatory approval, is expected to be completed during the fourth quarter of 2012.
A signing ceremony took place in Japan during which Noriyuki Inoue, the chairman and CEO of Daikin Industries Ltd., represented the company while David Swift, president of Goodman Global Inc., represented his.
“Goodman is the best North American partner for Daikin as we aim to reinforce our position as the leading global HVAC manufacturer,” said Inoue. “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.”
The Japanese manufacturer pointed out that Goodman has a significant presence in the ducted-style residential unitary HVAC segment in North America, a segment where Daikin has little offerings. It also acknowledged how Goodman generates strong financial performance through its low cost U.S. manufacturing operations and extensive network of over 900 distribution points, 192 of which are company operated.
According to a press release from Goodman, combining the global, environmental, technological, and commercial expertise of the Daikin Group and the logistical, residential, and light commercial expertise of Goodman, creates an opportunity to achieve a level of success in the HVAC marketplace not possible as individual companies.
Swift offered remarks about the landmark decision between the companies in which he stated that no immediate organizational changes will be made.
“The combination of the Daikin Group and Goodman is the next step in becoming the definitive leader in the global HVAC marketplace,” he noted. “I am enthusiastic about our companies coming together to further satisfy the needs of our customers now and in the future.”
According to Daikin, the combination of Daikin and Goodman will produce a number of strategic benefits and general efficiency, including:
• Allow Daikin to enter the mainstream ducted-type residential unitary segment in North America
• Grow Goodman’s business by introducing Daikin’s energy saving and power management technologies, such as remote monitoring, into their value product offerings.
• Grow Daikin’s global business more efficiently by transferring Goodman’s low cost product know-how and lean management expertise, especially in the area of supply chain management (SCM), into Daikin’s global operations. By utilizing Goodman’s cost competitiveness, Daikin will be able to target the high volume value segment in many cost sensitive global markets. On the other hand, Daikin believes that Goodman’s ducted-style products and the furnace heating equipment can be sold through Daikin’s global sales channels in more than 90 countries all over the world.
• Grow Daikin’s ductless business in North America by gaining access to Goodman’s leading distribution network.