Daikin Industries Ltd. will buy HVAC maker Goodman Global Group for $3.7 billion, the companies announced Wednesday.
The deal will make Japan-based Daikin the world’s largest manufacturer of residential heating and cooling equipment, and allow Daikin, which primarily makes ductless air conditioners and heat pumps, to enter America's ductwork-using HVAC market.
“Goodman is the best partner for Daikin in North America as we aim to become the leading global HVAC manufacturer,” said Daikin Chairman and CEO 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.
David L. Swift, Goodman’s president and CEO, said the deal will help his company improve its international presence.
“This is an opportunity for Goodman to grow globally as well as in the North American market by leveraging Daikin Group’s technical expertise, environmental technologies and North American commercial expertise,” Swift said. “With complementary core businesses, we are in a very competitive position to grow all segments of Goodman’s and Daikin’s business. We look forward to a successful future as a part of a winning team and are enthusiastic about creating more opportunities to excel.”
The purchase is expected to be finalized this year, pending regulatory approvals.