Acquisition would make the Japanese-based manufacturer the world’s biggest maker of heating, ventilating and air conditioning systems.
August 29, 2012
TOKYO—Japan’s Daikin Industries, Ltd., plans to buy Houston, Texas-based Goodman Global Group Inc., a purchase that will fortify its status as the world’s biggest maker of residential heating, ventilating and air conditioning systems.
Daikin, based in western Japan’s Osaka, said its board approved the $3.7 billion deal as part of its strategy for expanding in the US residential market.
Daikin wants to expand its manufacturing and sales overseas, especially in emerging markets. It said it would draw on support from a Japanese government initiative to help offset the impact of the strong Japanese yen on exports to help finance the deal.
Daikin is already the world’s biggest HVAC maker, with over $15 billion in sales in 2011. Acquiring Goodman would put it even further ahead of the world’s No. 2 maker, China’s Zhuhai Gree Group, with sales of about $13.3 billion.
Goodman’s president and CEO, David L. Swift, said the purchase would help Goodman to likewise expand its sales outside the U.S.
Daikin said it intends to keep Goodman independent, without merging it into its other businesses.
The two firms are complementary, given Daikin’s strength in energy-efficient “ductless” heating and cooling systems and Goodman’s dominant position in US residential HVAC systems.
Daikin, with over 44,000 employees, has said it aims to expand its global sales to $25.6 billion by 2015. Founded in 1924 to make aircraft radiator tubes, the company also makes hydraulic equipment, chemicals, shells and warheads. However, more than 85% of its sales are in air conditioning systems.
©The Canadian Press