Daikin has signed a deal to buy US manufacturer and distributor Goodman Global for $3.7bn.
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 2012.
Goodman specialises in residential unitary HVAC systems for air-conditioning a whole house and the move will give Daikin a foothold in the US market, an area where it has not yet made its mark.
The acquisition will enable Daikin to fully enter the ducted-style air-conditioning market for residential and commercial applications in North America. It expects its sales to grow substantially with a complementary product portfolio covering not only ducted and ductless air-conditioning systems but also furnace and heat-pump systems.
Daikin chairman and CEO Noriyuki Inoue said: 'Goodman is the best partner for Daikin in North America as we aim to become the leading global HVAC manufacturer. 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. Daikin will also capitalise 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.'
