Daikin set to purchase Goodman for US$3.7 bil. to gain N. America reach
August 31, 2012, 12:09 am TWN
OSAKA--Daikin Industries Ltd. will buy Goodman Global Inc. for US$3.7 billion, gaining greater access to a recovering North American housing market and making the Japanese company the world's largest maker of heating, ventilation and air-conditioning (HVAC) systems.
Daikin has long been interested in its Houston, Texas-based rival, but put off takeover talks following Japan's devastating earthquake and tsunami last year and then later due to uncertainty over the global economy.
The deal will strengthen Daikin's business in duct-type air-conditioners, where ducts are used to ventilate buildings, the prevalent technology used in the United States, analysts said.
"They've tried for so long to break into the U.S. residential air-conditioner market with their ductless technology, but it's just not happening, so acquiring into that market is the only way to go," said Edward Bourlet, a machinery analyst at CLSA Asia Pacific Markets in Tokyo.