Goodman Global, a Houston-based manufacturer of residential and light commercial heating, ventilation and air-conditioning equipment, has agreed to be acquired by private equity firm Hellm
Goodman Global, a Houston-based manufacturer of residential and light commercial heating, ventilation and air-conditioning equipment, has agreed to be acquired by private equity firm Hellman & Friedman in an all-cash transaction valued at USD2.65bn.
Goodman stockholders will receive USD25.60 in cash for each outstanding share. Subject to closing conditions, the transaction should be completed in the first quarter of next year.
‘After a thorough review of the strategic options available, we have concluded that this transaction will both reward our current stockholders and position Goodman for continued profitable growth,’ says president and chief executive Charles Carroll.
‘With the support of Hellman & Friedman, we expect to further enhance our position in the residential and light commercial heating, ventilation and air-conditioning marketplace as the value leader with a low-cost structure.’
Philip Hammarskjold, managing director of Hellman & Friedman, says: ‘Goodman is uniquely positioned in its markets. Through best-in-class operations, it has demonstrated an ability to deliver both outstanding value to the dealer community and exceptional performance to its shareholders. We are looking forward to partnering with the management team and being a resource for the continued growth of the business.’
Hellman & Friedman has obtained USD1.1bn in commitments for senior secured credit facilities from Barclays Capital, Calyon New York branch, GE Commercial Finance and vehicles managed by GSO Capital Partners, and USD500m in commitments for senior subordinated financing from vehicles managed by GSO Capital Partners and Farallon Capital Management.
Goldman Sachs and J.P. Morgan Securities are advisers to Goodman, while O’Melveny & Myers, and Simpson, Thacher & Bartlett are legal advisors to Goodman and to Hellman & Friedman respectively.
Goodman Global is the second-largest US domestic unit manufacturer of heating, ventilation and air conditioning products for residential and light commercial use, predominantly marketed under the Goodman, Amana and Quietflex brands and sold through company-operated and independent distribution networks with more than 800 outlets across North America.
Hellman & Friedman is a private equity investment firm with offices in San Francisco, New York and London that focuses on investing in industries including business services, asset management, information services, media, energy and healthcare.
Since its establishment in 1984, Hellman & Friedman has raised and, through its affiliated funds, managed more than USD16bn of committed capital and is currently investing its sixth partnership, Hellman & Friedman Capital Partners VI, with more than USD8bn in capital. Other recent investments include Catalina Marketing Corporation, Kronos, Sheridan Healthcare, Gartmore Investment Management, Iris Software Group, LPL Holdings, DoubleClick, the Nasdaq Stock Market and Texas Genco.