ACR-News

USA: Following our earlier news story, Daikin Industries has now confirmed the signing of a definitive agreement to acquire US manufacturer Goodman Global.
Daikin will purchase 100% of Goodman's stock and the total acquisition value is $3.7bn. The transaction, pending regulatory approval, is expected to be completed during the fourth quarter of this year.

Goodman has a significant presence in the ducted-type residential unitary hvac segment in North America, a segment where Daikin is weak.

'Goodman is the best partner for Daikin in North America as we aim to become the leading global hvac manufacturer,' said Noriyuki Inoue, chairman and ceo of Daikin.

'North America is the largest global HVAC market and most systems in this market are ducted-style, a segment where we have little presence,' he added. '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.'

'Goodman will allow us to serve a broader base of North American customers along with McQuay International (headquartered in Minneapolis, MN), which provides solutions for medium to large hvac customers, and Daikin AC (Americas), Inc. (headquartered in Dallas, TX), which provides ductless hvac solutions. Together, Daikin will gain the position of a very competitive North American manufacturer with industry leading energy-saving products and solutions ranging from residential to large building systems.'

The combination of Daikin and Goodman is seen as producing a number of strategic benefits and general efficiencies. It will allow Daikin to enter the mainstream ducted-type residential unitary segment in North America and establish a strong fourth pillar for Daikin's global operations, ie Japan, China, Europe and North America.

It will also introduce introducing Daikin's energy saving and power management technologies, such as remote monitoring, to the Goodman range.

Daikin's also see benefits from transferring Goodman's low cost product know-how and lean management expertise, especially in the area of supply chain anagement, into Daikin's global operations. By utilizing Goodman's cost competitiveness, Daikin says it will be able to target the high volume 'value' segment in many cost sensitive global markets. It also 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.

Finally, Daikin sees growth for its ductless business in North America by gaining access to Goodman's leading distribution network.

Goodman, with $2.1bn sales in 2011, will continue to manage itself as an independent business organization with its current management team. Its 4,500+ employees are primarily located in Texas and Tennessee. After the acquisition is completed, as new business opportunities are generated, Daikin intends to invest in Goodman's business, which can lead to an increase in job creation.